Caballos, Inc., has a debt to capital ratio of 48%, a beta of 1.13 and a pre-tax cost of debt of 6.9%. The firm had earnings before interest and taxes of $ 636 million for the last fiscal year, after depreciation charges of $ 216 million. The firm had capital expenditures of $ 338 million, and non-cash working capital increased by $ 43 million. The firm also had a book value of capital of $ 1.8 billion at the beginning of the last fiscal year. (The Treasury bond rate is 3.3 %, the market risk premium is 5.1 % and the firm has a tax rate of 40 %). Assume that the firm is in stable growth, and that the return on capital and reinvestment rates for the last fiscal year can be sustained forever. Estimate the Reinvestment Rate.