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A firm's stock is currently selling for $40 per share and the next dividend is expected to be $1.25 per share. Assume that the required
A firm's stock is currently selling for $40 per share and the next dividend is expected to be $1.25 per share. Assume that the required rate of return on this stock is 8%. What perpetual growth rate is expected on this stock?
Group of answer choices
.08
.03125
.04875
.055
.0625
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