Eakins Inc.'s common stock currently sells for $15.00 per share,the company expects to earn $2.75 per share during the current year,its expected payout ratio is 70%,and its expected constant growth rate is 6.00%.New stock can be sold to the public at the current price,but a flotation cost of 8% would be incurred.By how much would the cost of new stock exceed the cost of retained earnings? Do not round your intermediate calculations.
A) 0.78%
B) 1.12%
C) 0.67%
D) 1.45%
E) 0.89%

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