Cost of common equity capital for the firm

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Two-Stage Rocket paid an annual dividend of $1.55 yesterday, and it is commonly known that the firm's management expects to increase its dividend by 10.00 percent for the next two years and by 2 percent thereafter. If the current price of Two-Stage's common stock is $14.03, what is the cost of common equity capital for the firm? (Do not round intermediate calculations. Round answer to 0 decimal places, e.g. 15%.)

Reference no: EM131466363

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