7. The cost of new common steck Filatitioncosts represent the fees that firms pay to investment bankers to help them issue new common stock. White tion Homebuilders has a current stock price of $22.35 per chare, and is expected to pay a per-share dividend of $1.36 at the end of next year, The company's earnings' and dividends' growth rate are expected to grow at the constant rate of 5.2006 into the foreseeable future. If White tion expeds to incur flotition cocts of 6.50% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its neve common stock (rounded to two deoinal places) should be