You are forecasting the returns for Sunland Company, a plumbing supply company, which pays a current dividend of $10.10. The dividend is expected to grow at a rate of 3.1 percent. You have identified two public companies, Coronado and Whispering, which appear to be comparable to Sunland. Coronado has the same total risk as Sunland and a beta of 1.25. Whispering, in contrast, has a very different total risk but the same market risk as Sunland. Whispering's beta is 1.05. The market risk premium is 4.55 percent and the risk-free rate is 1.05 percent. (a) Determine the required return for Sunland using the appropriate beta. (Round answer to 3 decimal places, e.g. 3.361\%.)