What is the cost of common equity capital for the firm

Reference no: EM13265793

Two-Stage Rocket paid an annual dividend of $1.25 yesterday, and it is commonly known that the firm's management expects to increase its dividend by 7.90 percent for the next two years and by 2 percent thereafter. If the current price of Two-Stage's common stock is $14.20, what is the cost of common equity capital for the firm? (Do not round intermediate calculations. Round answer to 0 decimal places, e.g. 15%.)

Reference no: EM13265793

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