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16. Problem 9.16 (Nonconstant Growth) eBook Carnes Cosmetics Co.'s stock price is $35, and it recently paid a $1.25 dividend. This dividend is expected to

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16. Problem 9.16 (Nonconstant Growth) eBook Carnes Cosmetics Co.'s stock price is $35, and it recently paid a $1.25 dividend. This dividend is expected to grow by 19% for the next 3 years, then grow forever at a constant rate, g; and rs = 13%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places. %

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