3 ebook Problem Walk-Through Banyan Coi's common stock currently sells for $32.75 per share. The growth rate is a constant 7%, and the company has an expected dividend yield of 4% The expected long-run dividend payout ratio is 30%, and the expected return on equity (ROE) IS 10.0%. New stock can be sold to the public at the current price, but a flotation cost of 15% would be incurred. What would be the cost of new equity? Do not round Intermediate calculations. Round your answer to two decimal places