Canyon Buff Enterprise (CDE) is expected to pay a dividend of $2.5 next year. If the annual dividend is expected to be $2.5 forever and the current price is $50, the equity cost of capital for CDE is _____%.

Instruction: Type your answer in the unit of percentage point, and round to three decimal places. E.g., if your answer is 0.0106465 or 1.06465%, should type ONLY the number 1.065, neither 0.0106465, 0.0106, nor 1.065%, because I already have percentage sign at the end of the problem. Otherwise, Blackboard will treat it as a wrong answer.