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HighGrowth Company has a stock price of $20. The firm will pay a dividend next year of $1.08, and its dividend is expected to grow

HighGrowth Company has a stock price of $20. The firm will pay a dividend next year of $1.08, and its dividend is expected to grow at a rate of 4.3% per year thereafter. What is your estimate of HighGrowth's cost of equity capital?

The required return (cost of capital) of levered equity is ?%.

(Round to one decimal place.)

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