Company A has the following capital structure, which it considers to be optimal: Debt Preferred Stock Common Equity from retained earnings Common Equity from issuing new stocks Total Liabilities & Equity $40,000 $20,000 $30,000 $10,000 $100,000 . The following information is relevant to Company A: Before-tax cost of debt is 1096. The tax rate is 35%. Preferred stock with a dividend of $2 is currently sold to the public at a price of $40 per share. The common stock's last dividend paid was $1 per share, and its common stock currently sells for $45 per share, and dividends are expected to grow at a constant rate of 7%. The company can obtain new capital by selling new common stock to the public with a flotation cost of 5% . . 3. The cost of Common Equity from retained earnings rs of Company A is O a. 7% O b. 11.29% C. 9.38% d. 0.00% e. None of the above 4. The cost of Common Equity from issuing new stock re of Company A is O a. 0.29% O b. $11.59 O 0.9.5% O d. 11.88%