You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $115.00; g = 7.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock?

a. 8.60%

b. 7.05%

c. 10.49%

d. 8.52%

e. 9.98%