Li & Associates’ common stock currently trades at $45 a shar…

Li & Associates’ common stock currently trades at $45 a share.  It is expected to pay an annual dividend of $2.48 a share at the end of the year (D1 = $2.48), and the constant growth rate is 7.8 percent a year.  What is the company’s cost of common equity if all of its equity comes from retained earnings?