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Messman Manufacturing will issue common stock to the public for $50. The expected dividend and growth in dividends are $2.25 per share and 5%, respectively.

Messman Manufacturing will issue common stock to the public for $50. The expected dividend and growth in dividends are $2.25 per share and 5%, respectively. If the flotation cost is 11% of the issue's gross proceeds, what is the cost of external equity, re? Round your answer to two decimal places.

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