Shamas Famous Restaurants expects to pay a common stock dividend of $20.40 per share next year (d₁). Dividends are expected to grow at a 6% rate for the foreseeable future. Shamas common stock is selling for $102.00 per share and issuance costs are $7.00 per share. What is Shamas cost of internal equity?

21.47%

19.43%

26.00%

12.86%