The Gluntoli Co. Just issued a dividend of $2.70 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely.

If the stock sells for $44.50 a share, what is the company’s cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.18.)

Cost of equity ___________.