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1.) You are considering purchasing a local utility stock. The stock currently trades for $45/sh and recently paid a dividend of $1.05/sh. Dividends for this

1.) You are considering purchasing a local utility stock. The stock currently trades for $45/sh and recently paid a dividend of $1.05/sh. Dividends for this type of utility are expected to grow by 3% per year. If the stock is fairly valued in the marketplace, what rate of return are investors requiring?

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