Pathos Co.'s common stock is currently selling for

$21.11.

Dividends paid last year were

$0.90.

Flotation costs on issuing stock will be

12

percent of market price. The dividends and earnings per share are projected to have an annual growth rate of

9

percent. What is the cost of internal common equity for Pathos?

The cost of internal common equity for Pathos is

99%.

(Round to two decimal places.)