$.$ Weaver Chocolate Co$.$ expects to earn $$3\mathrm{.}50$ per share during the current year, its expected dividend

payout ratio is $65\%,$ its expected constant dividend growth rate is $6\mathrm{.}0\%,$ and its common stock currently

sells for $$47\mathrm{.}50$ per share. 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?

Do not round your intermediate calculations.

a$.11\mathrm{.}04\%$

b$.10\mathrm{.}93\%$

c$.12\mathrm{.}37\%$

d$.10\mathrm{.}82\%$

e$.9\mathrm{.}39\%$