Brown Inc.'s annual dividends are indicated below. Find the required rate of return for this stock, assuming the future dividend growth rate will remain the same and the company has an infinite horizon. Assume the January 1, 2011 price of the stock was $39.00. What was the required return for Brown Inc.Brown Inc.'s stock?

Year	2001	2002	2003	2004	2005
Dividend	$ 0.95	$ 1.03	$ 1.08	$ 1.17	$ 1.23
	2006	2007	2008	2009	2010
	$ 1.29	$ 1.39	$ 1.46	$ 1.58	$ 1.71

What was the estimated annual required return for Brown Inc.'s stock? (Round to two decimal places.)