Suppose Powers Ltd. just issued a dividend of $2.54 per share on its common stock. The company paid dividends of $2.04, $2.11, $2.28, and $2.38 per share in the last four years.

Required:

If the stock currently sells for $73, what is your best estimate of the companys cost of equity capital using arithmetic and geometric growth rates? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

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