BN Unicorn Co. common stock has a beta of 1.25 and is expected to pay a $2.21 dividend over the next year. The dividend is expected to grow at the constant rate of 6% per year. The risk-free rate is 1.08% and the return on the market index is 7.94%. What is the cost of new equity to the firm, in %, if the flotation costs of issuing it are 5%? (Drop the % symbol.) Blank 1. Calculate the answer by read surrounding text.