8. Problem 10.13 (Cost of Common Equity with Flotation) eBook Banyan Co.'s common stock currently...
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8. Problem 10.13 (Cost of Common Equity with Flotation) eBook Banyan Co.'s common stock currently sells for $45.25 per share. The growth rate is a constant 6%, and the company has an expected dividend yield of 25. The expected long-run dividend payout ratio is 35%, and the expected return on equity (ROE) is 6%. New stock can be sold to the public at the current price, but a flotatie cost of 10% would be incurred. What would be the cost of new equity? Do not round intermediate calculations. Round your answer to two decimal places
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