Compute required rate of return

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Reference no: EM131576734

A firm pays a $12.80 dividend at the end of year one (D1), has a stock price of $88, and a constant growth rate (g) of 5 percent.

Compute the required rate of return (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Reference no: EM131576734

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