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Summerdahl Resort's common stock is currently trading at $40.00 a share. The stock is expected to pay a dividend of $3.00 a share at the

Summerdahl Resort's common stock is currently trading at $40.00 a share. The stock is expected to pay a dividend of $3.00 a share at the end of the year (D1 = $3.00), and the dividend is expected to grow at a constant rate of 6% a year. What is the cost of common equity? Round your answer to two decimal places.

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