5. Davis Entertainment is considering developing and distributing a new board game for children. The project is similar in risk to the firm's current operations. The firm maintains a debt-equity ratio of .45 and retains all profits to fund the firm's rapid growth. How should the firm determine its cost of equity? a. by adding the market risk premium to the aftertax cost of debt b. by treating the common stock as if it were preferred stock c. by using the dividend growth formula d. by using the security market line approach e. by averaging the cost determined by both the dividend growth formula and the security market line approach.