You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D1=$1.25;P0=$37.50; and g =6.00% (constant). What is the cost of equity raised by retaining earnings? \begin{tabular}{c} 8.85% \\ \hline 12.12% \\ \hline 11.90% \\ \hline 10.55% \\ \hline 9.33% \end{tabular}