A firm has common stock with a market price of $55 per share and an expected dividend of $2.81 per share at the end of the coming year. The dividends paid on the outstanding stock over the past five years are as follows.

Use the 5-year-dividends shown in the previous table to calculate the cost of the firm's common stock equity. Use the "3 step Excel table procedure". And round-up the result to ONE decimal.

\begin{tabular}{cc} \hline Year & Dividend \\ \hline 1 & $2.00 \\ 2 & 2.14 \\ 3 & 2.29 \\ 4 & 2.45 \\ 5 & 2.62 \\ \hline \end{tabular}