Expected cash dividends are $$2\mathrm{.}00,$ the dividend yield is $8\%,$ flotation costs are $5\%$ of price, and the growth rate is $2\%.$ Compute the approximate cost of new common stock.

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Multiple Choice

$10\mathrm{.}42\%$

$12\mathrm{.}52\%$

$10\mathrm{.}17\%$

$11\mathrm{.}42\%$