PI, Inc. has paid annual dividends of $1.00, $1.05, $1.10, and $1.18 per share over the last four years (and going to pay divident to this trend)....

PI, Inc. has paid annual dividends of $1.00, $1.05, $1.10, and $1.18 per share over the last four years (and going to pay divident to this trend).

The stock is currently selling for $38 a share. What is the firm's cost of equity?

A. 8.79%

B. 8.96%

C. 10.38%

D. 10.53%

E. 11.79%