ary apter Problems - The Cost of Capital Back to Assignment Attempts Keep the Highest/1 8. Problem 10.13 (Cost of Common Equity with Flotation) eBook Problem Walk-Through Banyan Co.'s common stock currently sells for $38.75 per share. The growth rate is a constant 8%, and the company has an expected dividend yield of 4%. The expected long-run dividend payout ratio is 20%, 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. Grade it Now x Save & Continue Continue without saving