LePage Co$.$ expects to earn $$2\mathrm{.}20$ per share during the current year, its expected payout ratio is $55\%,$ its expected constant dividend growth rate is $4\mathrm{.}5\%,$ and its common stock currently sells for $$26\mathrm{.}00$ per share. New stock can be sold to the public at the current price, but a flotation cost of $2\mathrm{.}5\%$ would be incurred. What would be the cost of equity from new common stock?

a$.9\mathrm{.}15\%$

b$.9\mathrm{.}70\%$

C$.8\mathrm{.}45\%$

d$.9\mathrm{.}27\%$