Nick's Enchiladas has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $40 a share. What is the stock's required rate of return (assume the...

Nick's Enchiladas has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $40 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required return equal to the expected return)? Round the answer to two decimal places.