Penn Corporation is analyzing the possible acquisition of Teller Company. Both firms have no debt. Penn believes the acquisition will increase its total aftertax annual cash flows by $4.3 million indefinitely. The current market value of Teller is $116 million, and that of Penn is $176.3 million. The appropriate discount rate for the incremental cash flows is 11 percent. Penn is trying to decide whether it should offer 43 percent of its stock or $142.9 million in cash to Teller's shareholders.

What is the cost of the cash alternative?