DEF Company's current share price is $18.9 and it is expected to pay a $1.3 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 3.4% per year.

What is an estimate of DEF Company's cost of equity? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include a percent sign in your answer.

Enter your response below. Correct response: 10.28

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DEF Company also has preferred stock outstanding that pays a $2.45 per share fixed dividend. If this stock is currently priced at $32.7 per share, what is DEF Company's cost of preferred stock? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include a percent sign in your answer.

Enter your response below.

_________ (Answer here)

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