You are forecasting the returns forSwiftyCompany, a plumbing supply company, which pays a current dividend of $10.60. The dividend is expected to grow at a rate of3.6percent. You have identified two public companies,NashandCrane, which appear to be comparable toSwifty.Nashhas the same total risk asSwiftyand a beta of1.50.Crane, in contrast, has a very different total risk but the same market risk asSwifty.Crane's beta is1.30. The market risk premium is4.80percent and the risk-free rate is1.30percent.

Determine the required return forSwiftyusing the appropriate beta.(Round answer to 3 decimal places, e.g. 3.361%.)