Your company is expected to issue its next annual dividend in a year of $2.89 per share on its common stock. The company is expected to maintain a constant 3.37 percent growth rate in its dividends indefinitely. If the stock sells for $39.93 a share, what is the company's cost of equity? (Do not round any intermediate calculations. List your answer as a percent, round your final answer to 2 decimal places and enter it in the box below.)