Ferny Inc. currently has 60 million common shares outstanding that have a current market price of $13 per share. The shares paid a dividend of $1.50 per share last year, and investment analysts expect the dividends to grow at an average annual rate of 2% for the foreseeable future. If flotation costs on new common shares are expected to be 3% after tax, Femy's tax rate is 30% and Femy intends to finance its growth from retained earings, what is the component cost of Femy's common shares? a) 11.77% b) 13.54% C) 13.77% d) 14.13%