The earnings and dividends of Chang Enterprises, Inc. are expected to grow at $3\%$ per year for the foreseeable future. The last annual dividend $(D_t=0)$ was $$4\mathrm{.}00.$ The firm's marginal tax rate is $21\%.$ The firm's investment bankers believe that new shares of common stock could be sold for $$30$ per share, but would charge flotation cost of $4\%.$ Based on this information, what is your best estimate of the firm's cost of funding from new common stock?

Select one:

a$.13\mathrm{.}33\%$

b$.21\mathrm{.}39\%$

c$.20\mathrm{.}17\%$

d$.14\mathrm{.}31\%$

e$.19\mathrm{.}67\%$