A company has common stock that can be sold for $37.94 per share. The stock paid a dividend at the end of last year of $2. Dividends are expected to...

A company has common stock that can be sold for $37.94 per share. The stock paid a dividend at the end of last year of $2.84. Dividends are expected to grow at an annual rate of 5% indefinitely. Flotation costs associated with the sale of stock equal $4.61 per share. What is the corporation's cost of external equity? Round to two decimals