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Falon Corporation is issuing new common stock at a market price of $27.17. Dividends last year were $1.36 and are expected to grow at an

Falon Corporation is issuing new common stock at a market price of $27.17. Dividends last year were $1.36 and are expected to grow at an annual rate of 7.8 percent forever. What is Falon's cost of common equity capital (assuming no flotation cost)? 14.70% 13.20% 11.80% 12.10%

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