Sentry Manufacturing just paid a dividend $5 per share. The dividend is expected to grow at a constant rate of 6% per year. The price of Sentry Manufacturing's stock today is $32 per share. If Sentry Manufacturing decides to issue new common stock, flotation costs will equal $2.30 per share. Sentry Manufacturing's marginal tax rate is 35%. Based on the above information, the cost of new common stock (external equity) is Question 7 options: 1) 23.85% 2) 23.19% 3) 24.23% 4) 25.73%