You have collected the following information regarding your company The company's target capital structure is $75$ percent equity$25$ percent debt The company's forecasted capital budget for the coming year is $\backslash$$$50\mathrm{.}000,000$ The company has $10-$year bonds outstanding selling at par that have an annual coupon rate of $10\mathrm{.}50\%($ paid semi$-$annually$)$ New bonds will be issued as a private placement and, because total debt will increase, will require a $100$ basis$-$point risk premium above the yield on the firm's current debt The firm's tax rate is $40$ percent The company's stock has a beta of $2\mathrm{.}60.$ The risk$-$free rate is currently $7$ percentand the market$-$risk premium is $5$ percent The company's dividend next year $($D$\_\{1\})$ is forecasted to be $ $5\mathrm{.}10$ a shareThe company expects that its dividend will grow at a constant rate of $3$ percent a year $.$ The stock price is $ $30\mathrm{.}00.$ The company anticipates that it will add $$4,000,000$ to its retained earnings account over the coming year If the company needs to raise new common stock over the year $,$ its investment bankers anticipate that the total flotation cost for new common stock will equal $15\mathrm{.}00$ percent of the issue price per share. Further $,$ because of downward price pressure $,$ the issue price of the stock will be $ $2\mathrm{.}00$ less than the current price $.$ CAPM is the correct model to use for the cost of retained earnings The DCF $/$ Gordon Growth equation with flotation costs is the correct framework to use for the cost of new equity. Given this $,$ determine what the company's average cost of capital will be for the entire $ $50,000,000$ to be raised $.$ Enter your answer in decimal format $,$ truncated to $4$ decimal places $.$ For example $,$ if your answer is $10\mathrm{.}876\%,$ enter $"^0\mathrm{.}1087^$