LePage Co$.$ expects to earn $$2\mathrm{.}80$ per share during the current year, its expected payout ratio is $40\%,$ its expected constant dividend growth rate is $4\mathrm{.}50\%,$ and its common stock currently sells for $$34\mathrm{.}00$ per share. New stock can be sold to the public at the current price, but a flotation cost of $3\%$ would be incurred. What would be the cost of equity from new common stock?

a$.$

$7\mathrm{.}90\%$

b$.$

$7\mathrm{.}79\%$

c$.$

$8\mathrm{.}35\%$

d$.$

$7\mathrm{.}30\%$