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Company F will have earnings per share of $7 this year and expect that they will pay out $5 of these earnings to shareholders in
Company F will have earnings per share of $7 this year and expect that they will pay out $5 of these earnings to shareholders in the form of a dividend. Company F's return on new investments is 13% and their equity cost of capital is 7.5%. The expected growth rate for Company F's dividends is ________.
Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer.
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