The Ramirez Corporation has a current stock market price of $104, and expects to pay a dividend of $3.75 per share at the end of the current fiscal year. The risk-free rate for this firm is 5.5%, the firms beta is 1.25, and the expected return on the market is 15%. Find the cost of equity for this firm using the CAPM approach. a. 9.37% b. 42.0% c. 1.25% d. 17.38%