ZZZ Inc. plans to sell it's business and has used capitalization of earnings as a valuation method. with a stable cash flows of P2Million for the last 5 years. Forecast shows that similar level of cash flow would continue in the next several years. With the stability of business, it was sold to ZZZ Inc. for P8Million with a premium of P15%. Note that ZZZ Inc. annual operating expenses is P500k. Compute for the capitalization rate or the required rate of return used by ZZZ Inc