(11.97 was an incorrect answer)

What is the cost of new common stock if the required rate of return is 9%, the constant dividend growth rate is 2.5%, and flotation costs amount to 5% of the selling price? Round to the nearest 0.01%, drop the % sign. (Carry at least 5 decimals for the intermediate calculations. As a reality check, the answer must be above the required rate of 9%.) Type your numeric answer and submit 11.97