Suppose that Brown-Murphies' common shares sell for $16.00 per share, that the firm is expected to set their next annual dividend at $0.37 per share, and that all future dividends are expected to grow by 3 percent per year, indefinitely.
Assume Brown-Murphies faces a flotation cost of 11 percent on new equity issues.
What will be the flotation-adjusted cost of equity? (Round your answer to 2 decimal places.)