Problem 11.20 Underestimated Inc.'s common shares currently sell for $35 each. The firm's management believes that its shares should really sell for $41 each. The firm just paid an annual dividend of $2 per share and management expects those dividends to increase by 5 percent per year forever (and this is common knowledge to the market) What is the current cost of common equity for the firm? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, eg. 15.25%.) The current cost of common equity for the firm LINK TO TEXT What does management believe is the correct cost of common equity for the firm? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, eg. 15.25%.) Cost of common equity (as per firm's belief) Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT