Really confused by this question. Not sure where I'm going wrong. Any help would be greatly appreciated. Thx so much!

Marigold Inc.'s common stock currently sells for $40 per share, but the firm will net only $34 per share if it issues new common stock. The firm recently paid a dividend equal to $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10 percent per year. What is Marigold's cost of new common equity?

15.00%

15.88%

15.50%

16.47%

6.47%