Krause Industries common stock currently trades at $60 a share. It is expected to pay an annual dividend of $3.00 a share at the end of the year (D ₁ = $3.00), and the constant growth rate is 5.6 percent a year. If the company were to issue new stock, it would incur a 10 percent flotation cost. What would the cost of equity from new stock be?

	a.	10.60%
	b.	10.88%
	c.	11.47%
	d.	11.16%
	e.	10.15%