COST OF COMMON STOCK (EXTERNAL EQUITY). A firm's common stock currently sells for $28 per share. The firm recently paid a dividend of $3 per share on its common stock, and investors expect the dividend to grow at a constant rate of 5 percent per year. Flotation cost for a new issue is 4% of the price. Calculate the firm's cost of common stock using the DCF approach.

		16.25%
		16.72%
		15.71%
		None of the above