A firm pays a $13.80 dividend at the end of year one ( D 1 ), has a stock price of $149, and a constant growth rate ( g ) of 5 percent. Compute the required rate of return ( K e ). (Do not round...

A firm pays a $13.80 dividend at the end of year one (D
₁), has a stock price of $149, and a constant growth rate (g) of 5 percent.

Compute the required rate of return (K_e
).(Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)