P & B manufacturers has paid the following dividends during the last years: 2019 $1.26 2018 $1.17 2017 $1.08 2016 $1.00 P & B expects next year dividends will growth at the same rate. P & B expects to issue new common stocks at $40. The investment bank will charge a cost of 5% per share for issuing and selling the stocks. Calculate the cost of new common stocks Select one: 11.58% 3.25% 11.51% 3.15% 11.25% 11.40% none of the above.