Blue Sky Corporation common stock currently sells for $42 per share. The firm recently paid a dividend of $4.12 per share. Analysts have forecast that earnings and dividends will grow at an average annual rate of 6% per year. Flotation costs for new external equity are $4.50 per share. What is the company's cost of external equity?

Group of answer choices

20.82% 16.40% 12.84% 15.61% 17.65%