13. As the assistant to the CFO of Verde Corporation, you've been asked to estimate the cost of equity capital to the firm. Verde's common stock currently sells for $42.00 per share, the company expects to earn $3.50 per share during the current year (i.e growth rate is 5.50%. New stock can be sold to the public at the current price, but a flotation cost of 8% would be incurred. By how much would the cost of newly issued common stock exceed the cost of common stock from retained earnings? , EPS,-$3.50), its expected payout ratio is 60%, and its expected constant a. 0.35% b. 0.43% c. 0.55% d. 0.61%