Handy Candy Co. expects to earn $3.75 per share during the current year, its expected dividend payout ratio is 80%, its expected constant dividend growth rate is 6.25%, and its common stock currently sells for $75 per share. New stock can be sold to the public at the current price, but a flotation cost of 6% would be incurred. What would be the cost of equity from new common stock? 10.77% 10.51% 11.57% 4.26% 5.32%