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Cost of Common Stock: Seerex Wok Co. is expected to pay a dividend of $1.10 one year from today on its common shares. That dividend

Cost of Common Stock: Seerex Wok Co. is expected to pay a dividend of $1.10 one year from today on its common shares. That dividend is expected to increase by 5 percent every year thereafter. If the price of Seerex is $13.75, what is Seerex's cost of common equity? Please explain the answer.

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