P14-1 Calculating Cost of Equity [LO1] The Down and Out Co. just issued a dividend of $2.21 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 $60 a share, what is the company's cost of equity? (Do not round your intermediate calculations.) o 10.68% 4.06% O 10.39% O 11.49% 0 10.94%