8. Problem 10.13 (Cost of Common Equity with Flotation) Banyan Co.'s common stock currently sells for $39.75 per share. The growth rate is a constant 6%, and the company has an expected dividend yleld of 4%. The expected long-n dividend payout ratio is 40%, and the expected retum on equity (ROE) is 10.0%. New stock can be sold to the public at the current price, but a focation cost of 10\% would be incurred. What would be the cost of new equity? Do not round intermediate calculations, Round your answer to two decimal places