The Giants Jersey Stores just paid its first annual dividend of $0.12 a share. The firm plans to increase the dividend by 3.5% per year indefinitely. What is the firm's cost of equity of the current stock price is $6.50 a share?
a. 4.35%
b. 5.41%
c. 14.42%
d. 18.79
e. 19.98%