We have used analysts' estimate to determine that the market believes our dividends will grow at $4\%$ per year and the next dividend will be $$3.$ Our stock is currently selling for $$40.$

Our stock is currently selling for $$40.$

Using DGM$,$ the cost of equity is $\_\_\_\_\_\_\_\_\%.$

Group of answer choices

$11\mathrm{.}5$

$16\mathrm{.}5$

$24\mathrm{.}0$

$14\mathrm{.}0$

$19\mathrm{.}0$

$21\mathrm{.}5$