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crane Inc. common chairs currently sell for $30 each. The firms management believes that it's share should really sell for $54 each. If the firm

crane Inc. common chairs currently sell for $30 each. The firms management believes that it's share should really sell for $54 each. If the firm just paid an annual dividend of two dollars per share and management expects those dividends to increase by 8% per year forever, and the common knowledge to the market. What is the current cost of common equity for the firm?

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