Suppose Powers Ltd. just issued a dividend of $2.58 per share on its common stock. The company paid dividends of $2.08, $2.15, $2.32, and $2.42 per share in the last four years.

Required: If the stock currently sells for $77, 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).)