Noway Inc. just paid a dividend of RM1.85. This dividend is expected to grow at a constant rate of 3% per year. The stock price is currently RM12.50. New stocks issues will incur flotation costs of 15%. The companys marginal tax rate is 40%. Compute the cost of internal fund, and external equity.

Select one: A. 18.2%; 20.9% B. 12.5%; 17.8% C. 10.9%; 12.5% D. 17.8%; 20.4%