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Blue Sky Company just paid a $5 dividend per share to its shareholders. If the required return by shareholders is 10% and stock is traded

Blue Sky Company just paid a $5 dividend per share to its shareholders. If the required return by shareholders is 10% and stock is traded at $20, what should be the expected dividend growth rate?

a. 3.52%

b. 3.22%

c. 3.82%

d. 4.76%

e. 4.22%

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