Dividends are expected to grow perpetually

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Reference no: EM13919657

The current price of Zebar is $32.00 and the current dividend is $0.60. What is an investor’s required rate of return on Zebar if dividends are expected to grow perpetually at a compound annual rate of 8%?

A. 9.88%

B. 11.38%

C. 18.75%

D. 10.03%

Please show work and/or calculator inputs.

Reference no: EM13919657

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