Costly Corporation is considering using equity financing. Currently, the firm's stock is selling for $68.00 per share. The firm's dividend for next year is expected to be $3.80 with an annual growth rate of 6.0% thereafter indefinitely. If the firm issues new stock, the flotation costs would equal 12.0% of the stock's market value. The firm's marginal tax rate is 40%. What is the firm's cost of internal equity? 11.59% 12.35% 11.92% 12.73% 10.92%