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Your company's stock sells for $40 per share, the last dividend (DO) was $2.9, its growth rate is a constant 3 percent, and the company

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Your company's stock sells for $40 per share, the last dividend (DO) was $2.9, its growth rate is a constant 3 percent, and the company will incur a flotation cost of 10 percent if it sells new common stock. What is the firm's cost of new equity, re? 11.00% O 11.90% O 11.60% O 10.70% O 11.30%

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