A company is thinking of issuing more common stock. Its stock's current market price is $50 a share with an expected dividend annual one year from today of $3 a share. Dividends are expected to grow 5% per year and there are no flotation costs. What is the company cost of new common stock?

Select one:

a. 12.58%

b. 11.00%

c. 13.65%

d. 65%