XYZ Co$.$ stock sells for $$42$ and just a paid a dividend of $$1\mathrm{.}75.$ Dividends are expected to grow at a rate of $4\%$ forever. What is the cost of common equity?

$13\mathrm{.}50\%$

$8\mathrm{.}33\%$

$13\mathrm{.}87\%$

$8\mathrm{.}17\%$