The Lenzie Corporation's common stock has a beta of 1.30. If the risk-free rate is 5.3% and the expected return on the market is 11%, what is the company's cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Cost of equity capital Retlaw Corporation (RC) manufactures time-series photographic equipment. It is currently at its target debt-equity ratio of 0.87. It's considering building a new $58 million manufacturing facility. This new plant is expected to generate after-tax cash flows of $8.9 million in perpetuity. The company raises all equity from outside financing. There are three financing options: 1. A new issue of common stock: The flotation costs of the new common stock would be 11% of the amount raised. The required return on the company's new equity is 17% 2. A new issue of 20 year bonds. The flotation costs of the new bonds would be 4% of the proceeds. If the company issues these new bonds at an annual coupon rate of 8.0%, they will sell at par 3. Increased use of accounts payable financing: Because this financing is part of the company's ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC Management has a target ratio of accounts payable to long-term debt of 0.140. (Assume there is no difference between the pre-tax and after-tax accounts payable cost) What is the NPV of the new plant? Assume that RC has a 40% tax rate (Enter the answer in dollars. Do not round intermediate calculations. Round the WACC percentage to 2 decimal places. Round the final answer to 2 decimal places. Omit S sign in your response.) NPV