The market price per share of a company is Rs. 125. The dividend per share (DPS) is Rs 12 and DPS is expected to grow at a constant rate of 8% per annum. The cost of the equity capital to company will be

The market price per share of a company is Rs. 125. The dividend per s

1.	The market price per share of a company is Rs. 125. The dividend per share (DPS) is Rs 12 and DPS is expected to grow at a constant rate of 8% per annum. The cost of the equity capital to company will be
A.	17.6%
B.	15.4%
C.	13.2%
D.	11.8%
Answer» B. 15.4%