Storico Co. just paid a dividend of $1.60 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. If the stock price is $34.08, what required return must investors be demanding on the company's stock? (Hint: Set up the valuation formula with all the relevant cash flows, and see the CHAPTER HELP provided for you to see how to use Excel to solve this problem.) (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return 9.93%