$($Ref$.$ Unit $5$ Exercise $6)$ A company will pay a dividend of $$1\mathrm{.}5$ per share

next year. The dividends are expected to grow at a rate of $4\%$ forever. If

the stock currently sells for $$27$ per share, what is the percentage $(\%)$

required rate of return on the stock?

Note: Write your answer in $\%$ terms with $2$ or more decimal places. For

example, write $2\mathrm{.}54(\%)$ instead of $0\mathrm{.}0254.$