Rivoli inc. hired you as a consultant to help estimate its cost of capital. you have been provided with the following data: d0 = $0.80; p0 = $22.50; and g = 8.00% (constant). based on the dcf approach, what is the cost of equity from retained earnings?

a. 12.43%
b. 11.84%
c. 10.69%
d. 11.25%
e. 13.05%