The common stock of company ABC can currently be purchased in the market for $27.28 per share. The company expects to pay a dividend of $1.11 at the end of the next year; the dividend is expected to grow by 3.1% each year indefinitely.

What is the expected rate of return on this stock (r_s)?

Enter your answer as a decimal with a leading zero and 4 decimal places of precision (i.e. 0.1234)

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