What must be the company''s growth rate of dividend

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Sure Tool Company is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 14%. The beta of Sure Tool Company's stock is 1.25. Assume Sure's intrinsic value is $21 today.

What must be the company's growth rate of dividend?

Reference no: EM132501050

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