The following financial information is available on Rawls Manufacturing Company Current per share market price $48 00 Current (t 0) per share dividend $3 50 Expected long term growth rate 5 0 Rawls can issue new common stock to net the company $44 per share Determine the cost of internal equity capital using the dividend capitalization model approach (Compute answer to the nearest 0 1 )

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The following financial information is available on Rawls Manufacturing Company: Current per share market price $48.00 Current (t = 0) per share dividend $3.50 Expected

The following financial information is available on Rawls Manufacturing Company:

Current per share market price	$48.00
Current (t = 0) per share dividend	$3.50
Expected long-term growth rate	5.0%

Rawls can issue new common stock to net the company $44 per share. Determine the cost of internal equity capital using the dividend capitalization model approach. (Compute answer to the nearest 0.1%).

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