Question $7$

$5$ pts

Weaver Brothers expects to earn $$3\mathrm{.}50$ per share $(E_1),$ and has an expected dividend payout ratio of $60\%.$ Its expected constant dividend growth rate is $4\mathrm{.}2\%,$ and its common stock currently sells for $$30$ per share. New stock can be sold to the public at the current price, but a flotation cost of $5\%$ would be incurred. What would be the cost of equity from new common stock?

Your answer should be between $10\mathrm{.}15$ and $16\mathrm{.}90,$ rounded to $2$ decimal places, with no special characters.