You are forecasting the returns for Pharoah Company, a plumbing supply company, which pays a current dividend of $11.30. The dividend is expected to grow at a rate of 4.3 percent. You have identified two public companies, Novak and Splish, which appear to be comparable to Pharoah. Novak has the same total risk as Pharoah and a beta of 1.85. Splish, in contrast, has a very different total risk but the same market risk as Pharoah. Splish's beta is 1.65. The market risk premium is 5.15 percent and the risk-free rate is 1.65 percent. (a) Determine the required return for Pharoah using the appropriate beta. (Round answer to 3 decimal places, e.g. 3.361%.)