You are forecasting the returns for Pearl Company, a plumbing supply company, which pays a current dividend of $10.60. The dividend is expected to grow at a rate of 3.6 percent. You have identified two public companies, Martinez and Sandhill, which appear to be comparable to Pearl. Martinez has the same total risk as Pearl and a beta of 1.50. Sandhill, in contrast, has a very different total risk but the same market risk as Pearl. Sandhill's beta is 1.30. The market risk premium is 4.80 percent and the risk-free rate is 1.30 percent. (a) Determine the required return for Pearl using the appropriate beta. (Round answer to 3 decimal places, e.g. 3.361%.) Required return %