Cost of Equity: Dividend Growth Summerdahl Resort's common stock is currently trading at $37 a share. The stock is expected to pay a dividend of $2.50 a share at the end of the year (D1=$2.50), and the dividend is expected to grow at a constant rate of 7% a year. What is the cost of common equity? Round your answer to two decimal places. % Cost of Equity: Dividend Growth Summerdahl Resort's common stock is currently trading at $37 a share. The stock is expected to pay a dividend of $2.50 a share at the end of the year (D1=$2.50), and the dividend is expected to grow at a constant rate of 7% a year. What is the cost of common equity? Round your answer to two decimal places. %