Heino Inc., hired you as a consultant to help them estimate their cost of capital. You have been provided with the following data: risk-free rate = 5%; market risk premium = 6.0%, and beta = 1.05. Based on the CAPM approach, what is the cost of equity from retained earnings given a flotation cost of 10%?

10.50% / 10.71% / 10.88% / 11.30% / 11.60%