What is the cost of common equity capital for the firm

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Two-Stage Rocket paid an annual dividend of $1.20 yesterday, and it is commonly known that the firm's management expects to increase its dividend by 9.70 percent for the next two years and by 2 percent thereafter. If the current price of Two-Stage's common stock is $17.61, what is the cost of common equity capital for the firm?

Reference no: EM13265770

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