Constant-growth dividend discount model

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Reference no: EM132009734

Jand, Inc., currently pays a dividend of $1.56, which is expected to grow indefinitely at 4%. If the current value of Jand’s shares based on the constant-growth dividend discount model is $42.16, what is the required rate of return? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM132009734

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