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(Cost of common equity) Falon Corporation is issuing new common stock at a market price of $28.08. Dividends last year were $1.36 and are expected

(Cost of common equity) Falon Corporation is issuing new common stock at a market price of $28.08. Dividends last year were $1.36 and are expected to grow at an annual rate of 7.7 percent forever. What is Falon's cost of common equity capital? The company's cost of common equity is %. (Round to two decimal places.)

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