Ingersoil Rond Co. is expected to pay a dividend of $3 per share at the end of year 1(D), and the dividends are expected to grow at a constant rate of 1% forever. If the current price of the stock is $29 per share, calculate the expected return or the cost of equity capital for the firm. Type your answer as a percentage and not as decimal (i.e., 5.2 and not 0.052). Do not type the percentage symbol. Round your answer to the nearest two decimals if needed. Hint: PO = D1 / (r-g) (r-g) = D1 / PO r = D1/PO + g