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A stock with a beta of 0.8 just paid a dividend of $1.10 and is priced at $35. If the risk-free rate is 2% and

A stock with a beta of 0.8 just paid a dividend of $1.10 and is priced at $35. If the risk-free rate is 2% and the market risk premium is 6%, what is the expected growth rate for the stock?

A. 2.06%
B. 3.66%
C. 3.55%
D. 1.99%

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