Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: $D_1=$$$1\mathrm{.}25$;$P_0=$ $$20\mathrm{.}00$;$g=5\mathrm{.}00\%($constant$)$; and $F=6\mathrm{.}00\%.$ What is the cost of equity raised by selling new common stock?

$11\mathrm{.}65\%$

$11\mathrm{.}07\%$

$12\mathrm{.}35\%$

$13\mathrm{.}75\%$

$13\mathrm{.}98\%$