What would be cost of new equity

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COST OF COMMON EQUITY WITH FLOTATION Banyan Co.'s common stock currently sells for $43.00 per share. The growth rate is a constant 11.2%, and the company has an expected dividend yield of 5%. The expected long-run dividend payout ratio is 20%, and the expected return on equity (ROE) is 14%. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred, what would be the cost of new equity? Round your answer to two decimal places. Do not round your intermediate calculations.

Reference no: EM131908741

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