Last year the Black Water Inc. paid dividends $3.27. Companys dividends are expected to grow at an annual rate of 3% forever. The companys common stock is currently selling on the market for $69.20. The investments banker will charge flotation costs $3.43 per share. Calculate the cost of common equity financing using Gordon Model.

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).