A company's common stock has a market value of $75,87 per share and its next dividend is expected to be $6.13 per share. The stock's beta is 0.97 and the expected market return is 11.4% per year. The company's dividends are expected to grow forever at a constant rate of 7.2% per year and the tax rate is 34%. If the flotation costs for common stock are 6.5%, what is the company's annual cost of common stock financing? 1) 15.2% 2) 14.9% N 3) 15.6% 4) 15.8% 5) 16.5%