Grunewald Co

Grunewald Co.'s common stock currently sells for $60.00 per share,the company expects to earn $3.00 per share during the current year,its expected payout ratio is 40%,and its expected constant growth rate is 7.00%.New stock can be sold to the public at the current price,but a flotation cost of 9% would be incurred.By how much would the cost of new stock exceed the cost of retained earnings?

A) 0.05%
B) 0.10%
C) 0.20%
D) 0.30%