Lifestyle Corporation earned $25 million for the fiscal year. The firm's policy is to pay out 40 percent of its earnings as dividends. The remaining 60 percent of earnings is retained by the company for use in projects. The company has 2.9 million shares of common stock outstanding. The current stock price is $109. The historical (ROE) of 11 percent is expected to continue in the future. What is the required rate of return on the stock?