Your company's stock sells for $50 per share, its last dividend (D₀) was $2.00, its growth rate is a constant 5 percent and the company would incur a floatation cost of 15 percent if it sold new common stock/ The firm's weight of common equity id 38%. What is the component cost of common equity by issuing new common stock?

a. 1.9%

b. 10.4%

c. 3.7%

d. 9.9%

I believe it is 9.9%. Am I correct in this statement