Jiffy Co. expects to pay a dividend of $3.00 per share in one year. The current price of Jiffy common stock is $60 per share. Flotation costs are $3.00 per share when Jiffy issues new stock. What is 1) the cost of internal common equity (retained earnings) and 2) the cost of new common stock if the long-term growth in dividends is projected to be 8 percent indefinitely?

A. 13.26%; 14.02%

B. 13%; 13.26%

C. 13%; 14.02%

D. 13.26%; 13%