Required rate of return Henrys Hammer Shop, Inc., has common stock that is currently selling for $28.06.

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Required rate of return Henry’s Hammer Shop, Inc., has common stock that is currently selling for $28.06. They just paid a dividend of $1.78 and expect to increase this amount by $.15 in each of the next 3 years. Following that, they plan growth of 3% forever thereafter. What is the firm’s required rate of return?

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