An analyst is trying to figure out the required return on a privately traded stock. He knows the dividend yield on the stock is $6$ percent. He finds a similar publicly traded firm that has been paying a total return of $12\mathrm{.}5$ percent and has a dividend yield of $7\mathrm{.}25$ percent. Both firms are constant growth. Estimate g and kcs for the firm the analyst is studying.

Select answer from the options below

g $=13\mathrm{.}75\%$ and kcs $=6\mathrm{.}50\%$

g $=11\mathrm{.}25\%$ and kcs $=5\mathrm{.}25\%$

g $=6\mathrm{.}50\%$ and kcs $=13\mathrm{.}75\%$

g $=5\mathrm{.}25\%$ and kcs $=11\mathrm{.}25\%$