Company XYZ plans to issue new common stock. They expects to issue a dividend of $3.5 on this common stock at the end of the year . The company anticipates that these dividends will continue to grow at a constant rate of 4% each year indefinitely.The company's plans to issue this common stock at a price of $35.39. The stock will be issued with a flotation cost of 10%.

What is this company's cost of external equity (r_E)?

Enter your answer as a decimal with a leading zero and 4 decimal places of precision (i.e. 0.1234)