10 Jenny is analysing the shares of Omega 3. Omega 3 pays an annual dividend and has just paid this year's dividend of $0.85. The market price of each of these shares is $12.14. Jenny thinks that Omega 3 will increase dividends by 7% per year indefinitely. After analysing the risk profile of Omega 3, Jenny has decided to only invest in the shares of Omega 3 providing she gets an expected annual return of 13%. Should she buy Omega 3 shares or not? What is the implied rate of return on the shares