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A stock that pays a current dividend of $3 per share expects to pay this same annual dividend forever, that is, the company never expects
A stock that pays a current dividend of $3 per share expects to pay this same annual dividend forever, that is, the company never expects to change the dividend for as long as it lives. The stock has a current price of $33.33 per share. For this information, which of the following comes closest to an estimate of the stock's required rate of return? A. 11.11% B. 1% C. 9% D.3% E. 10%
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