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(Related to Checkpoint 14.2) (Cost of common equity) Salte Corporation is issuing new cormon stock at a market price of $26.29. Dividends last year were

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(Related to Checkpoint 14.2) (Cost of common equity) Salte Corporation is issuing new cormon stock at a market price of $26.29. Dividends last year were $1.46 and are expected to grow at an annual rate of 6.1 percent forever. What is Salte's cost of common equity? The company's cost of common equity is 4. (Round to two decimal places.)

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