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Suppose Wacken, Limited, Just issued a dividend of $2.15 per share on its common stock. The company paid dividends of $1.75,$1.89,$1.96, and $2.07 per share

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Suppose Wacken, Limited, Just issued a dividend of $2.15 per share on its common stock. The company paid dividends of $1.75,$1.89,$1.96, and $2.07 per share in the last fouryears. o. If the stock currently sells for $40, what is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends? (Do not round intermedtate calculations and enter your onswer as a percent rounded to 2 decimal places, e.g., 32.16.) a. What if you use the geometric average growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal ploces, e.g. 32.16.)

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