The Say Hey! Co. just issued a dividend of $2.45 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. The companys tax rate is 40%. If the stock sells for $45 a share, what is the companys cost of equity? Choose the range that includes the correct solution.

Group of answer choices

Less than 10%

Greater than or equal to 10%, but less than 11%

Greater than or equal to 11%, but less than 12%

Greater than or equal to 12%, but less than 13%

Greater than or equal to 13%