Sandhill Inc's common shares currently sell for $31 each. The firm's management believes that its shares should really sell for $40 each. The firm just paid an annual dividend of $2 per share and management expects those dividends to increase by 4 percent per year forever (and this is common knowledge to the market): (a1) What is the current cost of common equity for the firm? (Round final answer to 2 decimal ploces, e. 15.25x)