T(This information is used for problems 20 - 25) he Envelope Company has the following liabilities and equity Labrities and Stockholders' Equity Accounts Payable and Accruals $ 550 Short Term Notes Payable $1,100 Long Term Bank Financing Total Liabilities Stockholders Equity Total Liabilities and Equity $2,000 $3,650 $3,250 $6,900 The risk free rate of return is 3.0%. The market rate of return is 12.5%. The Beta is 1.2. The P/E ratio is 7.1. The stock price is $1480. The last annual dividend was $0.60. This dividend is expected to grow 4.5% per year in the future. There are 255 shares of common stock outstanding. Envelope's tax rate is 35%. The interest rate is 2.75% on short term notes payable and 5.3% on long term bank financing Calculate the rate of return on equity using the dividend growth model. 0102% 08.7% 14.45