Mary Poppins Inc. is all equity financed and generates perpetual annual EBIT of $600. Assume that the EBIT, and all other cash flows, occur at year end and that we are currently at the beginning of a year. Assume that Mary Poppins has a 100% payout rate, 1,000 shares outstanding, and that shareholders require a return of 6%. Assume perfect capital markets, with tax rate 0%. Mary Poppins is considering an open market stock repurchase. It plans to buy 20% of its outstanding shares at the price of $10.00 per share. The repurchased shares will be cancelled. It will finance the repurchase by issuing perpetual bonds worth a total sum of $2,000 and a coupon rate (and yield) of 4%. Assume that the tax rate is 0%. If Mary Poppins goes ahead with the repurchase, then what is the required return of stock holders after the repurchase is complete?