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Consider a stock that that is expected to pay a dividend of $2.8 a year from now. The dividend is expected to grow at a

Consider a stock that that is expected to pay a dividend of $2.8 a year from now. The dividend is expected to grow at a constant rate of 3.4% per year. The current price of the stock is $37.98. What rate of return are investors expecting? Enter your answer as a percentage. Do not include the percentage sign in your answer.

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