Magic Candy Co. expects to earn $3.75 per share during the current year, its expected dividend payout ratio is 35%, its expected constant dividend growth rate is 7.25%, and its common stock currently sells for $64 per share. New stock can be sold to the public at the current price, but a flotation cost of 8% would be incurred. What would be the cost of equity from new common stock? (Hint: Dividend Payout Ratio - Dividend Per Share / Earnings Per Share) O A) 7.55% OC) 9.48% O D) 9.64% B) 8.78% OE) 11.39%