Suppose Whitney Ltd. just issued a dividend of $2.08 per share on its common stock. The company paid dividends of $1.71, $1.82, $1.93, and $1.99 per share in the last four years.

If the stock currently sells for $45, what is your best estimate of the companys cost of equity capital using the arithmetic average growth rate in dividends? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.)

Cost of equity %

What if you use the geometric average growth rate? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.)

Cost of equity %