Today is January 31, 2018. A firm has a book-value-per-share of $10.00.

You are modeling a stock price usingResidual Earnings model. You have calculated the residual earnings to be $5.41 and $6.77 for period ending January 31, 2019 and January 31, 2020 respectively. The required return for this stock is 8%.

You are comfortable with a 2-year forecast. However, you are uncertain regarding the long-term growth rate that you should use to obtain the intrinsic value.

The market price on January 31, 2018 is $52.12 per share.

If your expectations regarding residuals earnings on January 31, 2019 and January 31, 2020 are correct, what is the long-run growth rate implied by the current market price?