Suppose Powers Ltd. just issued a dividend of $2.62 per share on its common stock. The company paid dividends of $2.12, $2.19, $2.36, and $2.46 per share in the last four years.

Required:

What was the dividend growth rate for each year? (Do not round intermediate calculations. Enter your answers as a percentage 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. 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	%

If the stock currently sells for $81, 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	%