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$7.$ The cost of new common stock

represent the fees that firms pay to investment bankers to help them issue new common stock.

Sunny Day Manufacturing Company has a current stock price of $$22\mathrm{.}35$ per share, and is expected to pay a per$-$share dividend of $$2\mathrm{.}45$ at the end of next year. The company's earnings' and dividends' growth rate are expected to grow at the constant rate of $8\mathrm{.}70\%$ into the foreseeable future, If Sunny Day expects to incur flotation costs of $5\mathrm{.}00\%$ of the value of its newly$-$raised equity funds, then the flotation$-$adjusted $($net$)$ cost of its new common stock $($rounded to two decimal places$)$ should be

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