Suppose that, as in Example 11-1, ADK Industries’ common shares are selling for \($32.75\) per share, and the company expects to set its next annual dividend at \($1.54\) per share. All future dividends are expected to grow by 6 percent per year indefinitely. In addition, let us suppose that ADK faces a flotation cost of 20 percent on new equity issues. Calculate the flotation-adjusted cost of equity.