Problem 17-13 Expected Return, Dividends, and Taxes [LO2] The Gecko Company and the Gordon Company are two firms that have same business risk but different dividend policies. Gecko pays no dividend, wher Gordon has an expected dividend yield of 9 percent. Suppose the capital gains tax is zero, whereas the income tax rate is 30 percent. Gecko has an expected earni growth rate of 17 percent annually, and its stock price is expected to grow at this si rate. The aftertax expected returns on the two stocks are equal (because they are in same risk class). What is the pretax required return on Gordon's stock? (Do not ro intermediate calculations and enter your answer as a percent rounded to 2 deci places, e.g., 32.16.)