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A company has common stock that can be sold for $31.54 per share. The stock paid a dividend at the end of the year of
A company has common stock that can be sold for $31.54 per share. The stock paid a dividend at the end of the year of $3.57. Dividends are expected to grow at an annual rate of 11% indefinitely. Flotation costs associated with the sale of stock equal $2.26 per share. What is the corporation's cost of external equity? Submit your answer as a percentage and round to two decimal places.
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