A firm has expected dividend of $5.61 per share at the end of the coming year. The current stock price is $98. The underpricing necessary in the competitive capital market is $2 per share. Flotation costs are expected to total $1 per share. The dividends paid on the outstanding stock over the past five years are as follows: Year 1 2 3 Dividend $4.00 4.28 4.58 4.90 5.24 On A C The cost of this new issue of common stock is 5.8 percent. 10.8 percent. 7.7 percent 12.9 percent