Ali baba's common stock currently sells for $127.50 per share, and is expected to pay dividend...

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Ali baba's common stock currently sells for $127.50 per share, and is expected to pay dividend of $2.5 at the end of the year. Its dividend is expected to grow at a constant rate of 5% per year. If the company must issue a new stock, it would incur a flotation cost of 6.00% of the issue price. What is the firm's flotation adjusted cost of new external equity? Oa. 7.9608% Ob. 7.0859% Oc. 6.8498% Od. 5.0209% Oe. 6.9608% Ali baba's common stock currently sells for $127.50 per share, and is expected to pay dividend of $2.5 at the end of the year. Its dividend is expected to grow at a constant rate of 5% per year. If the company must issue a new stock, it would incur a flotation cost of 6.00% of the issue price. What is the firm's flotation adjusted cost of new external equity? Oa. 7.9608% Ob. 7.0859% Oc. 6.8498% Od. 5.0209% Oe. 6.9608%