Question 25 (3.5 points) Costly Corporation is considering using equity financing. Currently, the firm's stock is selling for $38.00 per share. The firm's dividend for next year is expected to be $5.80 with an annual growth rate of 7.0% thereafter indefinitely. If the firm issues new stock, the flotation costs would equal 12.0% of the stock's market value. The firm's marginal tax rate is 40%, what is the firm's cost of internal equity? 24.34% 22.26% 23.33% 25.56% 20.99%