Storico Co$.$ just paid a dividend of $$2\mathrm{.}20$ 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 $$33\mathrm{.}97,$ 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

use trial and error to find the unknown rate of return.$)($Do not round intermediate

calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$

Answer is complete but not entirely correct.