Problem 7-5 Stock Valuation [LO 1]

Mitchell, Inc., is expected to maintain a constant 5.85 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 4.35 percent, what is the required return on the companys stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return ____________%