A company's common stock currently sells for $22.50 per share, the expected dividend for the coming year is $1.62, and its expected constant growth rate is 6.00%. New stock can be sold to the public at the current price, but a flotation cost of 8% would be incurred. By how much would the cost of new stock exceed the cost of retained earnings? Do not round your intermediate calculations.

O a. 82%

0 b.63%

0 c 55%

O d..14%

O e..08%

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