Duggins Veterinary Supplies can issue perpetual preferred stock at a price of $61 a share with an annual dividend of $5.50 a share. Ignoring flotation costs, what is the company's cost of preferred stock, rps? Round your answer to two decimal places.

Summerdahl Resorts' common stock is currently trading at $22 a share. The stock is expected to pay a dividend of $1.75 a share at the end of the year (D1 = $1.75), and the dividend is expected to grow at a constant rate of 5% a year. What is the cost of common equity? Round your answer to two decimal places.