2) Jiffy Co. expects to pay a dividend of $1.00 per share in one year. The current price of Jiffy common stock is $45 per share. Flotation costs are $2.50 per share when Jiffy issues new stock. Jiffy Co.s longterm growth in dividends is projected to be 5.5 percent per annum indefinitely? a. What is the cost of internal common equity (retained earnings)?

A) 2.2222%

B) 2.3529%

C) 7.7222%

D) 7.8444%

E) 7.8529%

F) 7.9824%