A firm is expected to have earnings next year of $4.99 per share and the firm is expected to pay a dividend of $3.22. Investors' required rate of return is 8%. If the sustainable growth rate is 2.5%, what must be the rate of return earned by the firm on its new investments? Enter your answer as a percentage. Do not include the percentage sign in your answer.
Enter your response below rounded to 2 DECIMAL PLACES.