The ordinary shares of ABC Ltd are currently trading at $2.60. A new share issue would be made at an offer price of $2.50. Issue costs are expected to be 5% of the proceeds of the issue. The last dividend was 27c and the next dividend is due a year from now. The estimated growth rate is 1.5% per annum and this rate is expected to continue. The corporate tax rate is 20%. Calculate the appropriate before tax costs of a new share issue. Select one: a. 15.92% b. 0.1592% c. 1.644% d. 0.1467%