Maple Ltd. has 1 million common shares outstanding. The beta on these common shares is 1.25, and they are trading at a price of $20 per share. Maple paid a dividend of $1.75 per share last year. Analysts anticipate that these dividends will grow at an average annual rate of 2% for the foreseeable future. What is the component cost of new common equity if Maple's tax rate is 35% and flotation costs on new common equity are 6% before tax?

10.93%

11.11%

11.29%

11.49%