Builtrile's common stock is currently selling for $88 a share and the firm just paid an annual dividend of $3.40 per share.

Management believes that dividends and earnings should grow at 9% annually. Since new stock would need to be sold to finance an expansion, Builtrite expects flotation costs to be 5% of the expected selling price of $88 a share. Based on this, and a marginal tax rate of 34%, what is the cost of new common stock?