Capital structure is 40% debt, 10% preferred stock, and 50% common equity
Common stock currently sells for	$27.00
The expected CS dividend is	$0.50
Growth rate is	8.00%
Flotation cost on CS	$1.25
Flotation cost on PS	$1.10
Preferred stock sells for	$46.00
PS pays a dividend of	$5.00
Market yield on bonds is	9.00%
Tax rate is	34.00%

Calculate the firm?s cost of new common stock

Select one:

A. 9.85%

B. 9.94%

C. 11.14%

Help please, show work!