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ABC Inc. stock is selling for $29.00. It is expected to pay a dividend of $2.50 at the end of the year. Dividends are expected

ABC Inc. stock is selling for $29.00. It is expected to pay a dividend of $2.50 at the end of the year. Dividends are expected to grow at a constant rate of 7.5% indefinitely. What is the required rate of return on the stock?

A. 13.64%

B. 16.12%

C. 16.77%

D. 15.65%

E. 12.48%

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