The current market value of preferred stock shares of a large corporation is equal to $100 each, while common stock shares of the same company are selling for $200 each. Both securities are supposed to pay equal dividends per share at the end of the first year. The required rate of the return on the preferred stock is equal to 7%, while that on the common stock is equal to 10%. The dividends on the companys common stock are expected to increase indefinitely at a constant rate. Calculate this rate and round the answer to the second decimal place.