Compost Science Inc. (CSI) is in the business of converting Boston's sewage sludge into fertilizer. The Metropolitan District Commission (MDC) has signed the contract with CSI. At the end of year 1, CSI is expected to have a $4 EPS (earnings per share) with 60% payout ratio. Assume the firm has constant growth rate as 4%, what is the required rate of return on CSI if the investor now purchases the stock at the market price of $100