13.7

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-Stages 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%.)

Cost of common equity: ______ %