Blair Brothers shares are currently priced at $52 per share and are expected to pay a year-end dividend of $2.8 per share (D1 = $2.8). The dividend is expected. They grow at a constant rate of 4 percent annually. The company has not retained enough earnings to finance capital projects and must therefore issue new common shares. The new shares have an estimated float cost of $2 per share. 

What is the cost of the company's equity capital?