Banyan Co$.$s common stock currently sells for $$40\mathrm{.}75$ per share. The growth rate is a constant $4\%,$ and the company has an expected dividend yield of $5\%.$ The expected long$-$run dividend payout ratio is $50\%,$ and the expected return on equity $($ROE$)$ is $8\mathrm{.}0\%.$ 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.