Mallory Industries common stock currently trades at $50 a share. It is expected to pay an annual dividend of $2.25 a share at the end of the year (D ₁ = $2.25), and the constant growth rate is 9.4 percent a year. If the company were to issue new stock, it would incur a 4 percent flotation cost. What would the cost of equity from new stock be?

	a.	14.53%
	b.	14.09%
	c.	13.90%
	d.	14.32%
	e.	13.73%