(Cost of common equity) Falon Corporation is issuing new common stock at a market price of $27.96. Dividends last year were $1.26 and are expected to grow at an annual rate of 6.3 percent forever....

Extracted text: (Cost of common equity) Falon Corporation is issuing new common stock at a market price of $27.96. Dividends last year were $1.26 and are expected to grow at an annual rate of 6.3 percent forever. What is Falon's cost of common equity capital? The company's cost of common equity is %. (Round to two decimal places.)