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Falon Corporation is issuing new common stock at a market price of $28.44. Dividends last year were $1.35 and are expected to grow at an

Falon Corporation is issuing new common stock at a market price of $28.44. Dividends last year were $1.35 and are expected to grow at an annual rate of 6.5 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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