You are forecasting the returns for Skysong Company, a plumbing supply company, which pays a current dividend of $$11\mathrm{.}30.$ The

dividend is expected to grow at a rate of $4\mathrm{.}3$ percent. You have identified two public companies, Concord and Marigold, which appear

to be comparable to Skysong. Concord has the same total risk as Skysong and a beta of $1\mathrm{.}85.$ Marigold, in contrast, has a very different

total risk but the same market risk as Skysong. Marigold's beta is $1\mathrm{.}65.$ The market risk premium is $5\mathrm{.}15$ percent and the risk$-$free rate

is $1\mathrm{.}65$ percent.

$($a$)$

Determine the required return for Skysong using the appropriate beta. $($Round answer to $3$ decimal places, e$.$g$.3\mathrm{.}361\%.)$

Required return $\%$