P14-1 Calculating Cost of Equity [LO1] 13 The Down and Out Co. just issued a dividend of $2.91 per share on its common stock. The company is expected to maintain a constant 7 percent growth rate in its dividends indefinitely. If the stock sells for $40 a share, what is the company's cost of equity? (Do not round your intermediate calculations.) 1 points References Multiple Choice 14.78% 14.05% 14.27% 7.96% 15.52%