Problem $7-5$ Stock Valuation $[$LO $1]$

Caccamise Company is expected to maintain a constant $6$ percent growth rate in its dividends, indefinitely. If the company has a dividend yield of $4\mathrm{.}5$ percent, what is the required return on the company's stock?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

Required return

$\%$