Debt rate for this firm = 9%

Tax rate = 23%

Preferred Dividend = $5.00

Price Preferred Stock = $41.00

Common Dividends at t1 = $4.00

Price of Common Stock = $39.00

Growth rate of dividends = 3%

Flotation costs = 4%

of price Calculate the cost of external common equity (expressed as a percentage with one decimal i.e. xx.x%).