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Southern Corporation has a capital structure of 4 0 % debt and 6 0 % common equity. This capital structure is expected not to change.

Southern Corporation has a capital structure of 40% debt and 60% common equity. This capital structure is expected not to change. The firm's tax rate is 21%. The
firm can issue the following securities to finance capital investments:
Debt: Capital can be raised through bank loans at a pretax cost of 8.2%. Also, bonds can be issued at a pretax cost of 7.8%.
Common Stock: Retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $83. Flotation costs will be
$3 per share. The recent common stock dividend was $5.16. Dividends are expected to grow at 8% in the future.
What is the cost of external equity?
PLEASE INPUT THE ANSWER IN PERCENT ROUNDING IT TO 2 DECIMALS. DO NOT INCLUDE % SIGN, E.G., INSTEAD OF 9.9922% INPUT 9.99
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