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c) An ordinary share will pay an annual dividend of $2.50 in 1 year. If the share price is worth $45 today. The rate of

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c) An ordinary share will pay an annual dividend of $2.50 in 1 year. If the share price is worth $45 today. The rate of return is 8% p.a. It is expected that the annual dividend will grow at a constant annual growth rate for the foreseeable future. Calculate the annual growth rate to support the current market price. Round your answer to the nearest 0.01%. (2 marks)

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