Banyan Co.’s common stock currently sells for $58.75 per share. The growth rate is a constant 4%, and the company has an

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Banyan Co.’s common stock currently sells for $58.75 per share.
The growth rate is a constant 4%, and the company has an expected
dividend yield of 4%. The expected long-run dividend payout ratio
is 50%, and the expected return on equity (ROE) is 8.0%. New stock
can be sold to the public at the current price, but a flotation
cost of 10% would be incurred. What would be the cost of new
equity? Do not round intermediate calculations. Round your answer
to two decimal places. Answer as a percent.