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1. Fire Bush Inc. (FBI) has common shares that currently trade at $30.00 per share. FBI just paid a dividend of $2.70, and investors expect

1. Fire Bush Inc. (FBI) has common shares that currently trade at $30.00 per share. FBI just paid a dividend of $2.70, and investors expect this to increase by 5% next year. The expected price of the shares one year from now is $35.00. Which of the following represents the expected rate of return on FBI's shares? a) 16.7% b) 22.4% c) 25.7% d) 26.1%

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