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Consider the following information which relates to a given company: Item 2019 Value Earnings Per Share $6.41 Price Per Share (Common Stock) $36.88 Book Value

Consider the following information which relates to a given company:

Item

2019 Value

Earnings Per Share

$6.41

Price Per Share (Common Stock)

$36.88

Book Value (Common Stock Equity)

$60.83

Million

Total Common Stock Outstanding

2.1

Million

Dividend Per Share

$4.7

Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 6.03% in the future, or possibly 8.54% for the next 2 years and 6.44% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 8.76% to 6.6%. Currently, the risk-free rate is 5.8%.

Required: Determine the new required return for the firm's stock.

Answer% (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)

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