ABC Company's current share price is $$20\mathrm{.}45$ and it is expected to pay a $$1\mathrm{.}35$ dividend per share next year. After that, the firm's dividends are expected to grow at a rate of $3\mathrm{.}1\%$ per year.

What is an estimate of ABC Company's cost of equity? Enter your answer as a percentage and rounded to $2$ DECIMAL PLACES. Do not include a percent sign in your answer.

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Number

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