You are forecasting the returns for Novak Company, a plumbing supply company, which pays a current dividend of $10.10. The dividend is expected to grow at a rate of 3.1 percent. You have identified two public companies, Splish and Blossom, which appear to be comparable to Novak. Splish has the same total risk as Novak and a beta of 1.25. Blossom, in contrast, has a very different total risk but the same market risk as Novak, Blossom's beta is 1.05. The market risk premium is 4.55 percent and the risk-free rate is 1.05 percent. (a) Determine the required return for Novak using the appropriate beta. (Round answer to 3 decimal places, e.g. 3.361%) Required return %