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Handy Candy Co. expects to earn $3.75 per share during the current year, its expected dividend payout ratio is 80%, its expected constant dividend growth rate is 6.25%, and its common stock currently sells for $75 per share. New stock can be sold to the public at the current price, but a flotation cost of 6% would be incurred. What would be the cost of equity from new common stock? 4.26% 5.32% 10.77% 11.57% 10.51%