You have been provided with the following data: expected dividend next period $($D$1)=$ $$0\mathrm{.}50$; current price $($P$0)=$ $$20\mathrm{.}00$; and constant growth rate in dividends $($gL$)=5\mathrm{.}00\%.$

What is the cost of common equity from reinvested earnings based on the dividend growth approach?

Question $33$ options:

$10\mathrm{.}57\%$

$9\mathrm{.}96\%$

$7\mathrm{.}50\%$

$8\mathrm{.}85\%$