Problem 7-8 Valuing Preferred Stock [LO 1]

Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.20 dividend every year, in perpetuity. If this issue currently sells for $80.20 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return __________ %