Company XYZ plans to issue new common stock. They expects to issue dividend of $2.56 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 3.9% each year indefinitely. The company's plans to issue this common at a stock price of $53.13. The stock will be issued with a flotation cost of 8%.

What is this companys cost of external equity (rE)?

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