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A firm's stock is currently selling for $25 per share and the next dividend is expected to be $1 per share. Assume that the required

A firm's stock is currently selling for $25 per share and the next dividend is expected to be $1 per share. Assume that the required rate of return on this stock is 10%. What perpetual growth rate is expected on this stock?

0.45

.05

.04

.055

.06

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