A company currently pays $5 dividend on its common stock. These dividends are expected to grow by 4% each year, perpetually. The current price of the company's stock is $63. The company plans on raising $75 million in capital by issuing common stock. The flotation costs are 3%.

What is the cost of common stock for the company?

12.5%

10.6%

13.8%

11.9%