Very Good Chocolates' common stock is currently trading at $40 a share. The stock is expected to pay a dividend of $3.53 a share at the end of the year, and the dividend is expected to grow at a constant rate of 4% a year. What is its cost of common equity for a new issue if Chocolates has been advised to set the issue price at $39.33 a share while it must pay flotations costs of 5% of the issue price?