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Opentech Corporation recently paid a cash dividend of $2.20. Their dividend 12 years ago was $1.30. Currently, their common stock price is $50 per share.

Opentech Corporation recently paid a cash dividend of $2.20. Their dividend 12 years ago was $1.30. Currently, their common stock price is $50 per share. If they issue new shares, they will pay flotation costs of $2 per share to the investment bankers. Their corporate tax rate is 21%. What is the firms cost of external equity?

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