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8. Pedneault Corp's common stock is currently selling for $73.00. It is expected to pay a dividend of $3.00 at the end of the year.

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8. Pedneault Corp's common stock is currently selling for $73.00. It is expected to pay a dividend of $3.00 at the end of the year. Dividends are expected to grow at a constant rate of 4% indefinitely. Compute the expected rate of return on Pedneault Corp stock. (Hint: Review slides example) (2 points)

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