You are forecasting the returns for Tamarisk Company, a plumbing supply company, which pays a current dividend of $11.10. The dividend is expected to grow at a rate of 4.1 percent. You have identified two public companies, Vaughn and Bramble, which appear to be comparable to Tamarisk. Vaughn has the same total risk as Tamarisk and a beta of 1.75. Bramble, in contrast, has a very different total risk but the same market risk as Tamarisk. Bramble's beta is 1.55. The market risk premium is 5.05 percent and the risk-free rate is 1.55 percent. (a) Your answer is incorrect. Determine the required return for Tamarisk using the appropriate beta. (Round answer to 3 decimal places, e.g. 3.361\%.)