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A firm pays a $5.80 dividend at the end of year one ( D 1 ), has a stock price of $97, and a constant

A firm pays a $5.80 dividend at the end of year one (D₁), has a stock price of $97, and a constant growth rate (g) of 4 percent.

Compute the required rate of return (K_e). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Rate of return

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