Long run earnings growth rate for the firm

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In Dec 2019, the Yahoo! Finance website provided the following information for the stock of Zoracle:

Trailing P/E:   12.70

Forward P/E:  14.80

Earnings growth rate: 2.10%

If you assume that the earnings growth rate represents the long -run earnings growth rate for the firm, what is the implied rate of return required by investors? Round your answer to the nearest tenth of a percent.

Reference no: EM132433856

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