You are a forecasting the returns for teal company, a plumbing supply company, which pays a current dividend of $10.30. The dividend is expected to grow at a rate of 3.3 percent. You have identifies two public companies, Flint and Buffalo, which appear to be comparable to Teal. Flint has the same total risk as Teal and a beta of 1.35. Buffalo, in contrast, has a very different total risk but the same market risk as Teal. Buffalo's beta is 1.15. The market risk premium is 4.65 percent and the risk-free rate is 1.15 percent.

Determine the required return for Teal using the appropriate beta. (Round answer to 3 decimal places)