Consider the following information which relates to a given company:

Item 2019 Value

Earnings Per Share $6.56

Price Per Share (Common Stock) $39.06

Book Value (Common Stock Equity) $64.2 Million

Total Common Stock Outstanding 2.55 Million

Dividend Per Share $4.9

Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 5.78% in the future, or possibly 7.65% for the next 2 years and 5.93% 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 8.95% to 10.69%. Currently, the risk-free rate is 5.61%.

Required:

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

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