Dividends are expected to grow

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The current price of XYZ stock is $80.00. Dividends are expected to grow at 5% indefinitely and the most recent dividend was $2.75. What is the required rate of return on XYZ stock?

A) 7.3% B) 8.6% C) 9.5% D) 10.6% E) 11.2%

Reference no: EM13880885

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