how did he get the answer 10.5% "A"

EXERCISES TOPIC 3 AND 4 1. From the Gordon-Shapiro formula, calculate the risk premium for shares of a company of which you know the following data: shares are traded at 12 euros, the last year dividend has been 1.2, its average ROE over the past 5 years has been 10% and has distributed an average of 50% of their earnings. Finally, the return of 10 years treasury bonds is 5%. a) 10.50% b) 10% c) 9.50% d) 11%