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Allen Wrench Company is expected to pay a $1.00 per-share dividend at the end of the year (D 1 = $1.00). The stock sells for

Allen Wrench Company is expected to pay a $1.00 per-share dividend at the end of the year (D1 = $1.00). The stock sells for $20 per share and its required rate of return is 11 percent. The dividend is expected to grow at a constant rate, g, forever. What is the growth rate, g, for this stock?

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