Messman Manufacturing will issue common stock to the public for $42.50. The expected dividend and growth in dividends are $2.12 per share and 5.80%, respectively. If the flotation cost is 8.95% of the issue's gross proceeds, what is the cost of external equity, re? Round your answer to two decimal places. a). 10.25 b). 11.27 c). 10.82 d). 12.62 e). 11.72