You were recently hired by Nast Media Inc. to estimate its cost of capital. You were provided with the following data: D1 = $2.50; P0 = $60.00; g = 7.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock?

a)11.02%

b) 11.20%

c)11.58%

d)11.39%