Rabie, Inc., has an issue of preferred stock outstanding that pays a $5.70 dividend every year, in perpetuity.

Required:

If this issue currently sells for $80.45 per share, what is the required return? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Required return

%

Required:

If the company plans to pay a dividend of $3.40 next year, what growth rate is expected for the company