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A firm pays a current dividend of $2, which is expected to grow at a rate of 8% indefinitely. If the current value of the

A firm pays a current dividend of $2, which is expected to grow at a rate of 8% indefinitely. If the current value of the firms shares is $72, what is the required return(=discount rate = expected return) applicable to the investment based on the constant-growth dividend discount model (DDM)?

a. 8%

b. 11%

c. 13%

d. 15%

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