finance

You are forecasting the returns for Coronado Company, a plumbing supply company, which pays a current dividend of $10.60. The dividend is expected to grow at a rate of 3.6 percent. You have identified two public companies, Whispering and Metlock, which appear to be comparable to Coronado. Whispering has the same total risk as Coronado and a beta of 1.50. Metlock, in contrast, has a very different total risk but the same market risk as Coronado. Metlock's beta is 1.30 . The market risk premium is 4.80 percent and the risk-free rate is 1.30 percent. (a) Determine the required return for Coronado using the appropriate beta. (Round answer to 3 decimal places, e.g. 3.361\%.)