Bouchard Company's Shares Sell for R20 Per Share, Its Last

Bouchard Company's shares sell for R20 per share, its last dividend (D0) was R1.00, its growth rate is a constant 6 percent, and the company would incur a flotation cost of 20 percent if it sold new ordinary shares.Retained earnings for the coming year are expected to be R1,000,000, and the ordinary equity ratio is 60 percent.If Bouchard has a capital budget of R2,000,000, what component cost of ordinary equity will be built into the WACC for the last rand of capital the company raises?

A) 11.30%
B) 11.45%
C) 11.80%
D) 12.15%
E) 12.63%