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Do not do any interim rounding, calculate to at least four decimal places prior to converting to a percentage. Magnus Inc.'s price is $27.30 a

Do not do any interim rounding, calculate to at least four decimal places prior to converting to a percentage.

Magnus Inc.'s price is $27.30 a share, their dividend for last year was $1.75, and the long-term sustainable growth rate is 3.25%. The expected return on the stock is closest to:

A.

9.66%.

B.

6.62%.

C.

9.87%.

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