Grill Works and More has paid annual dividends of $0.65, $0.70, $0.72, and $0.76 per share over the last four years, respectively. The stock is currently selling for $27 a share.

Assuming that the dividend growth rate continues at its recent average, what is this firm's estimated cost of equity?

(round answer to whole number with two decimal points: i.e., use 1.23 percent instead of 0.0123)