Trahern Baking Co$.$ common stock sells for $$32\mathrm{.}50$ per share. It expects to earn $$3\mathrm{.}50$ per share during the current year, its expected dividend payout ratio is $65\%,$ and its expected constant dividend growth rate is $6\mathrm{.}0\%.$ New stock can be sold to the public at the current price, but a flotation cost of $5\%$ would be incurred. What would be the cost of equity from new common stock?

$12\mathrm{.}70\%$

$13\mathrm{.}37\%$

$14\mathrm{.}04\%$

$14\mathrm{.}74\%$

$15\mathrm{.}48\%$