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BM expects to pay a dividend of $4 next year and expects these dividends to grow at 2.42% a year. The price of IBM is

BM expects to pay a dividend of $4 next year and expects these dividends to grow at 2.42% a year. The price of IBM is $71 per share. What is IBM's cost of equity capital?

(The answer on my screen is 12.13 - That is the format. No $ sign, no % sign. It is just 12.13 - Your answer will be different, but that is the format. )

Round your answer to 2 decimal places.

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