Carnes Cosmetics Co.'s stock price is $48, and it recently paid a $1.75 dividend. This dividend is expected to grow by 18% for the next 3 years, then grow forever at a constant rate, g; and r_s = 11%. 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.

Problem 9.16 (Nonconstant Growth) Question 19 of 20 Check My Work (3 remaining) eBook Carnes Cosmetics Co.'s stock price is $48, and it recently paid a $1.75 dividend. This dividend is expected to grow by 18% for the next 3 years, then grow forever at a constant rate, g; and rs = 11%. 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. Check My Work (3 remaining) 0= Icon Key Problem 9.16 (Nonconstant Growth) Question 19 of 20