Banyan Co.’s common stock currently sells for $38.25 per share. The growth rate is a constant 6%, and the company has an

[answerhappygod]

Banyan Co.’s common stock currently sells for $38.25 per share.
The growth rate is a constant 6%, and the company has an expected
dividend yield of 2%. The expected long-run dividend payout ratio
is 20%, and the expected return on equity (ROE) is 7.5%. New stock
can be sold to the public at the current price, but a flotation
cost of 5% would be incurred. What would be the cost of new equity?
Do not round intermediate calculations. Round your answer to two
decimal places