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A stock is trading for a share price of $21.07. You expect it to pay a dividend of $1.52 exactly one year from now, and
A stock is trading for a share price of $21.07. You expect it to pay a dividend of $1.52 exactly one year from now, and you expect future annual dividends to grow at 2.3% per year indefinitely. Under the Efficient Market Hypothesis, what is the best guess of the stock's required rate of return? Enter your answer as a decimal and show for decimal places.
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