I've been working on this question for awhile and keep getting it wrong. Would truly appreciate any help. Thx so much!

Bouchard Company's stock sells for $20 per share, its last dividend (D₀) was $1.00, its growth rate is a constant 6 percent, and the company must pay flotation cost equal to 20 percent when it issues new common stock. What is Bouchard's cost of issuing new common stock?

11.00%

12.25%

12.63%

11.30%

11.56%