A firm wishes to issue new shares of its stock, which already trades in the market. The current stock price is $28, the most recent dividend was $4 per share, and the dividend is expected to grow at a rate of 7% forever. Flotation costs for this issue are expected to be 7%. What is the required rate of return in this new issue? Answer is 23.44. Just need help solving.

I've posted this question three times now, and I keep getting this work...

Required rate of return=(dividend next period/current price(1-floatation cost))+growth rate

=(4*1.07)/28(1-0.07)+0.07 =0.2344 =23.44%(Approx).

No matter how I enter that formula into a calculator I get 21.215, not 23.44. Please help.