Cost of Equity: Dividend Growth

Summerdahl Resort's common stock is curr$$ntly trading at $$25$ a share. The stock is expected to pay a dividend of $$2\mathrm{.}00$ a share at the end of the year $(D_1=$ $$2\mathrm{.}00),$ and the dividend is expected to grow at a constant rate of $4\%$ a year. What is the cost of common equity? Round your answer to two decimal places.

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