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What is the required rate of return on a stock

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Reference no: EM133120814

A's stock pays a dividend once each year, and it just paid a dividend of $0.85 yesterday. The current market price of the stock is $12.14. If investors believe that A will increase it dividends by 7 percent per year forever, what is the required rate of return on A's stock?

Reference no: EM133120814

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