ater Candy Co. expects to earn $3.50 per share during the current year, its expected dividend payout ratio is 60%, its expected constant dividend growth rate is 8.0%, and its common stock currently sells for $50 per share. New stock can be sold to the public at the current price, but a flotation cost of 15% would be incurred. What would be the cost of equity from new common stock?

Question 8 options:

	12.20%
	12.94%
	12.61%
	12.78%