The entire share capital of a company consist of a 1, 00,000 equity share of Rs. 100 each. Its current earnings are Rs. 10, 00,000 p.a. The company wants to raise additional funds of Rs. 25, 00,000 by issuing new shares. The flotation cost is expected to be 10% of the face value. Find out the cost of equity capital given that the earnings are expected to remain the same in coming years.