Retained earnings don't pay interest or dividends, but investors still expect to earn a return on the earnings that the firm reinvests on their behalf. Use the following information to estimate an investor's required rate of return.

Risk free rate = 3.00%
Beta = 1.050
Market rate = 11.00%
Today's price = $20.00
Growth = 6.00%
Anticipated dividend = $1.50
Borrowing rate = 7.50%
Tax rate = 25.00%

a. 11.40%
b. 11.15%
c. 11.55%
d. 14.55%