What is the cost of equity from retained earnings for a company with a beta of $1\mathrm{.}75,$ if the market risk premium return is $6\%,$ the real risk$-$free rate is $2\%,$ and the rate of inflation is $1\%?$

$12\mathrm{.}50\%$

$9\mathrm{.}00\%$

$8\mathrm{.}25\%$

$14\mathrm{.}50\%$

$13\mathrm{.}50\%$