48) Costly Corporation is considering using equity financing. Currently, the firm's stock is selling for $59.00 per share. The firm's dividend for next year is expected to be $6.00 with an annual growth rate of 5.0% thereafter indefinitely. If the firm issues new stock, the flotation costs would equal 14.0% of the stock's market value. The firm's marginal tax rate is 40%. What is the firm's cost of external equity?

16.82%

15.17%

15.68%

17.42%

15.86%