The Pierce Co. just issued a dividend of $3.78 per share on its common stock. The company is expected to maintain a constant 6.35 percent growth rate in its dividends indefinitely. If the stock sells for $36 a share, what is the companys cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16; exclude the percentage sign, %.)