Hannibal's Restaurants expects to pay a common stock dividend of $4.35 per share next year. Dividends are expected to grow at a 3 percent rate for the foreseeable future. Hannibal's common stock is selling for $30 per share, and issuance costs are $4.25 per share. a. What is Hannibal's cost of internal equity? b. What is Hannibal's cost of external equity?

A.a. 17.50% b. 19.89%

B.a. 7.21% b. 19.89%

C.a. 7.24% b. 19.61%

D.a. 5.25% b. 19.62%