Cache Creek Manufacturing Company is expected to pay a dividend of $3.36 in the upcoming year. Dividends are expected to grow at 7% per year. The risk-free rate of return is 5% and the expected return on the market portfolio is 19%. Investors use the CAPM to compute the required rate of return, and the constant growth DDM to determine the value of the stock. The stock's current price is $76.00. Using the constant growth DDM, the required rate of return is . [Hint: You are solving for k ]