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The Fancy Nancy Corporation is expected to pay an annual dividend of $ 3 . 5 0 on its common stock in one year. The

The Fancy Nancy Corporation is expected to pay an annual dividend of $3.50 on its common stock in one year. The current stock price is $65 per share. The company announced that it will increase its dividend by 5.7 percent annually. What is the company's cost of equity? Convert to a percentage and round to two places past the decimal point.

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