Royal Mediterranean Cruise Line's common stock is selling for $22 per share. Recently company paid a dividend of $3.26 per share and dividends are expected to grow at the same rate in the future as during the past 10 years. Flotation costs on new stocks are 3.75% of the selling price. The company pays 35% of its earnings as dividends every year. Earnings per share 10 years ago was $5.20 per share. Compute the cost of internal equity.