H2. Suppose Potter Ltd. just issued a dividend of $2.47 per share on its common stock. The company paid dividends of $1.97, $2.04, $2.21, and $2.31 per share in the last four years. If the stock currently sells for $66, what is your best estimate of the company's cost of equity capital using:

a, arithmetic growth rates and

b. geometric growth rates

(Provide answer as a percent rounded to 2 decimal places, e.g., 25.36%)