Last year the Black Water Inc. paid dividends $4.03. Companys dividends are expected to grow at an annual rate of 3% forever. The companys common stock is currently selling on the market for $77.15. The investments banker will charge flotation costs $2.53 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).