You are recently hired as the assistant to the CFO of Greenstone Inc., you must estimate its cost of common equity. You have been provided with the following data:

The dividends expected to be paid out next year $($D$1)=$ $$1\mathrm{.}95$; Current price of the stock P$0)=$ $$115$; and the expected long$-$term growth rate $($gL$)=2\mathrm{.}45\%$ which is expected to be constant. Based on the dividend growth model, which of the following is closest to the cost of common equity from reinvested earnings?

a$)3\mathrm{.}79\%$

b$)3\mathrm{.}87\%$

c$)4\mathrm{.}15\%$

d$)5\mathrm{.}39\%$

e$)5\mathrm{.}82\%$