Javits & Sons' common stock currently trades at $30.00 a share. It is expected to pay an annual dividend of $1.00 a share at the end of the year (D1 = $1.00), and the constant growth rate is 8% a year. If the company were to issue new stock, it would incur a 16% flotation cost. What would the cost of equity from new stock be? Round your answer to two decimal places.

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