7.

XYZ common stock is expected to pay a dividend of $1.18 next year, and that dividend grows at a constant rate of 9.9 percent. If the current price of XYZ common stock is $49.28, then what is the expected rate of return for this stock, based on the Discounted Cash Flow model? (Show your answer in DECIMAL FORM to three decimals, e.g., 12.3% would be entered as 0.123).