The stock of Wealth Creator Ltd. is currently traded at $40 per share. Its book value of equity is $20 per share. Analysts following the firm agree that, given the Return on Equity of 25%, its book value will grow at the annual rate of 5% infinitely. Based on the information given, the analyst consensus on the firms cost of equity capital is

a.

None of the options provided.

b.

15%

c.

5%

d.

20%

e.

10%