Suppose Hornsby Ltd. just issued a dividend of $2.53 per share on its common stock. The company paid dividends of $2.03, $2.10, $2.27, and $2.37 per share in the last four years.

If the stock currently sells for $72, what is your best estimate of the company's cost of equity capital using arithmetic and geometric growth rates? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity

Arithmetic dividend growth rate %

Geometric dividend growth rate %