A company common stock currently sells for $42.00 per share, the company expects to earn $4 per share next year, its expected payout ratio is 25%, and its expected constant growth rate is 2.50%. New stock can be sold to the public at the current price, but a flotation cost of 11% would be incurred. By how much would the cost of new stock exceed the cost of retained earnings? EXPLAIN How would this impact the WACC of the company?