What is the discount rate associated with the stock

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Question: When presented with an investment opportunity, Jospeh knows that calculating the interest rate associated with that investment is really imprtant. Currently, he is evaluatiing a stock that will pay its next dividend in the amount of $6.50, and has a constant dividend growth rate of 5%. He can buy this stock for $65 per share.

What is the discount rate associated with this stock?

Reference no: EM132049768

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