What required rate of return is implied by the current

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Losh Key Corporation common stock is selling for $25.00 per share with an expect cash dividend next year of $1.00. Short term prospects are excellent for Losh Key: a 25% annual growth rate in dividend payments is expected for the three years following next year’s dividend. After that a normal growth rate of 4% per year forever is expected. What required rate of return is implied by the current $25.00 price?

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Reference no: EM131065198

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