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Common equity investors of Adventure Outfitter Corp. require a 20.5% return. The flotation costs of selling the stock amount to 5.5% of the selling price.

Common equity investors of Adventure Outfitter Corp. require a 20.5% return. The flotation costs of selling the stock amount to 5.5% of the selling price. The dividends are expected to grow at the 6.3% annual rate forever. Find the cost of new equity for the company in % to the nearest .01%.

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