DE Inc.$\text{'}$s current $($and optimal$)$ capital structure is $40\%$ debt, $10\%$ preferred stock, and $50\%$ common equity. CDE is $1$ can issue up to $$20,000,000$ in new bonds at par with a $7\%$ coupon rate; any subsequent amount must carry a $2\%$ pre added risk. A new issue of preferred stock would pay an annual dividend of $$3$and be priced to net the company $$7$ floatation cost. The firm has $$21,000,000$ in change in retained earnings for the current period. CDE's common stock expected dividend on the common stock at $t_1$ is $6.$ Floatation costs on a new common stock issue is $$5\mathrm{.}00$ per share. year.

What is the cost of internal common equity?

If the answer is $10\mathrm{.}45\%,$ enter $10\mathrm{.}45$