Suppose that Brown-Murphies common shares sell for $16.50 per share, that the firm is expected to set their next annual dividend at $0.39 per share, and that all future dividends are expected to grow by 3 percent per year, indefinitely. Assume Brown-Murphies faces a flotation cost of 12 percent on new equity issues.

What will be the flotation-adjusted cost of equity?(Round your answer to 2 decimal places.)

Cost of equity%