You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: Dividend at the end of the year D1 = $2.13; The stock is currently trading at a price of $42.50, and the dividends are expected to grow at a growth rate of 2% (constant); The flotation costs for issuing the shares of common stock is 5.00% of the proceeds. The cost of equity raised by selling new common stock is ______% (show 2 decimals, e.g. 9.99%).