Landmark, Inc. hired you as a consultant to help them estimate their cost of capital. You have been provided with the following data: its most recently paid dividend is $1.50; its current market price is $44.75; its ROE = 12% and its dividend payout ratio is 40%. New common stock will have an 8% flotation cost. Based on the DCF approach and the Retention Growth Model, what is the cost of equity from new common stock?