Banyan Co.'s common stock currently sells for $52.75 per share. The growth rate is a constant 6%, and the company has an expected dividend yield of 3%. The expected long.nun dividend payout ratio is 20\%, and the expected return on equity (ROE) is 7.5\%. 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