Consider the following information which relates to a given company:

Item 2019 Value

Earnings Per Share $6.69

Price Per Share (Common Stock) $35.26

Book Value (Common Stock Equity) $63.15 Million

Total Common Stock Outstanding 2 Million

Dividend Per Share $5.23

Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6.55% in the future, or possibly 8.28% for the next 2 years and 6.96% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 8.42% to 8.7%. Currently, the risk-free rate is 5.3%.

Required:

a- Determine the current required return for the firm's stock.

b- Determine the new required return for the firm's stock.