Linda Corp paid dividends to Ordinary Shares last year by 2.20 per share. The current market price of Ordinary Shares is 40 per share and investors expect that dividend to grow by 6% by next year. Cost to issue Ordinary Shares is 5% of market value. What is the cost of new common stock?

A. 11.50%

B. 12.14%

C. 11.83%

D. 11.79%