Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: $D_1=$$$2\mathrm{.}35$;$P_0^{}=$$$40\mathrm{.}00$;$g=3\mathrm{.}00\%$

$($constant$)$; and $F=6\mathrm{.}00\%.$ What is the cost of equity raised by selling new common stock?

a$.8\mathrm{.}88\%$

b$.8\mathrm{.}54\%$

c$.9\mathrm{.}07\%$

d$.9\mathrm{.}44\%$

e$.9\mathrm{.}25\%$