Problem 13.20 a1-a2 (Part Level Submission) (Solution Video) Oriole Inc.'s common shares currently sell for $40 each. The firm's management believes that its shares should really sell for $50 each. The firm just paid an annual dividend of $2 per share and management expects those dividends to increase by 2 percent per year forever (and this is common knowledge to the market). (a1) Your answer is correct. What is the current cost of common equity for the firm? (Round final answer to 2 decimal places, e.g. 15.25%.) The current cost of common equity for the firm 7.1% What does management believe is the correct cost of common equity for the firm? (Round final answer to 2 decimal places, e.g. 15.25%.) Cost of common equity (as per firm's belief)