The Shoe Outlet has paid annual dividends of $0.65, $0.70, $0.72, and $0.75 per share over the last four years, respectively. Given these data, the average growth rate of dividends during this period was 4.9054 percent. The Shoe Outlet plans to increase dividends at the same rate. The stock is currently selling for $25 a share. What is this firm's cost of equity?

a. 7.24 percent

b. 7.83 percent

c. 8.05 percent

d. 8.84 percent

e. 9.03 percent