Last year the Black Water Inc. paid dividends $4.78. Company's dividends are expected to grow at an annual rate of 2% forever. The company's common stock is currently selling on the market for $76.46.
The investments banker will charge flotation costs $2.01 per share. Calculate the cost of common equity financing using Gordon Model Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).