3 years ago, a company IPO-ed a set of common stocks at a price of $50.00. Last year, it paid an annual dividend of $2.00. Today, these stocks trade at $44.00. Assuming that the Constant Growth Model CGM (g_c = 3%) of DDM is a valid valuation of these stocks and ignoring floatation costs, the company's cost of equity k_s is _________%. [TWO-decimal places]

Instructions: Please show your work. Just calculate this and type your answer in the box below. Your number format should be in units of % to TWO-decimal places. For example, 65.12% or 65.12 would be acceptable, while 0.65 [a decimal] and 65% and 65.1% and 65.123% and 65.1234% and 65 and 65.1 and 65.123 and 65.1234 would be auto-graded incorrectly.