GHI Company's current share price is $$18\mathrm{.}2$ and it is expected to pay a $$1\mathrm{.}5$ dividend per share next year. After that, the firm's dividends are expected to grow

at a rate of $3\mathrm{.}2\%$ per year.

What is an estimate of GHI 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: $11\mathrm{.}44+-0\mathrm{.}01$

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GHI Company also has preferred stock outstanding that pays a $$1\mathrm{.}8$ per share fixed dividend. If this stock is currently priced at $$25\mathrm{.}6$ per share, what is GHI

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.

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