Use the data provided on Cadbury to answer the question below. The risk free rate is $4\mathrm{.}25\%.$ The expected return on the market portfolio is $9\mathrm{.}75\%.$ Cadbury's Beta is $0\mathrm{.}8.$ What is Cadbury's cost of equity?

Group of answer choices

$7\mathrm{.}80\%$

$8\mathrm{.}70\%$

$4\mathrm{.}40\%$

$8\mathrm{.}65\%$