$8\mathrm{.}33$

points

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S$14-01$ Calculating Cost of Equity $[$LO$1]$

The Tribiani Company just issued a dividend of $$2\mathrm{.}90$ per share on its common stock. The company is expected to maintain a constant $4\mathrm{.}5$ percent growth rate in its dividends indefinitely.

If the stock sells for $$56$ a share, what is the company$$s cost of equity? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$