A firm paid a dividend yesterday of 6 SAR per share (D ₀ = 6 SAR). The dividend is expected to grow at a constant rate of 8% per year. The price of Sentry Manufacturing's stock today is 35 SAR per share. If Sentry Manufacturing decides to issue new common stock, flotation costs will equal 3.50 SAR per share. Sentry Manufacturing's marginal tax rate is 35%. Based on this information, the cost of new common stock is ________.

		28.38%
		28.57%
		26.62%
		31.40%