A firm needs to take flotation costs into account when it is raising capital from retained earnings or Issuing new common stock?

Alpha Moose Transporters has a current stock price of $22.35 per share, and is expected to pay a per-share dividend of $2.03 at the end of next year. The companys earnings and dividends growth rate are expected to grow at the constant rate of 5.20% into the foreseeable future. If Alpha Moose expects to incur flotation costs of 5.00% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be Select

14.76

11.81

12.55

14.28