Graham Co.s common stock currently sells for $60 per share. Dividends are payable at the end of each year. The companys last dividend was $1.12. The constant growth rate is 7%. New stock can be sold to the public at the current price of $60, but a flotation cost of 9% would be incurred. By how much would the cost of new stock exceed the cost of retained earnings? Your answer will be a percentage.