The company A's common stock currently sells for $60 per share, the company expects to earn $3 per share during the current year, its expected payout ratio is 40%, and its expected constant growth rate is 7%. New stock can be sold to the public at the current price, but a flotation cost of 9% would be incurred. By how much would the cost of new stock exceed the cost of retained earnings?

a. 0.05%

b. 0.1%

c. 0.2%

d. 0.3%