Banyan Co$.\text{'}$s common stock currently sells for $$48\mathrm{.}75$ per share. The growth rate is a constant $4\%,$ and the company has an expected dividend yield of $4\%.$ 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 $5\%$ would be incurred.

What would be the cost of new equity? Do not round intermediate calculations. Round your answer to two decimal places.

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