Jiffy Co. expects to pay a dividend of $6.40 per share in one year. The current price of Jiffy common stock is $85.00 per share. Flotation costs are 10% of the market price per share when the corporation issues new stock. What is the cost of external common equity (new common stock) if the long-term growth in dividends is projected to be 6 percent indefinitely?

A. 17.92%

B. 14.37%

C.13.53%

D.10.50%