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A Corp. is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells

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A Corp. is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $27.50 per share, and its required rate of return is 13.75%. The dividend is expect constant rate, g, forever. What is the equilibrium expected growth rate? a. 6.35% b.7.20% c. 9.20% d.5.96% Oe. 9.87%

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