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Cost of common stock: Two-Stage Rocket's common stock is expected to pay an annual dividend equal of $1.25, and it is commonly known that the

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Cost of common stock: Two-Stage Rocket's common stock is expected to pay an annual dividend equal of $1.25, and it is commonly known that the firm expects dividends paid to increase by 8 percent for the next two years and by 2 percent thereafter. If the current price of Two-Stage's common shares is $17.80, what is the cost of common equity capital for the firm? Expected dividend(D1) $1.25 Growth rate (First Phase) 8% number of years in first phase 2 growth rate (2nd phase) 2% Current Stock price $17.80 Solve for the cost of common equity capital csp= Excell

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