Suppose Hornsby Ltd. just issued a dividend of $2.59 per share on its common stock. The company paid dividends of $2.09, $2.16, $2.33, and $2.43 per share in the last four years. What was the dividend growth rate for each year? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

	Growth rate
Year 1	%
Year 2	%
Year 3	%
Year 4	%

What were the arithmetic and geometric dividend growth rates over the past four years? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

	Cost of equity
Arithmetic dividend growth rate	%
Geometric dividend growth rate	%

If the stock currently sells for $78, what is your best estimate of the companys cost of equity capital using arithmetic and geometric growth rates? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

	Cost of equity
Arithmetic dividend growth rate	%
Geometric dividend growth rate	%