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Dyer Furniture is expected to pay a dividend of D 1 = $6 per share at the end of the year, and that dividend is
Dyer Furniture is expected to pay a dividend of D1 = $6 per share at the end of the year, and that dividend is expected to grow at a constant rate of 4% per year in the future. The company's beta is 1.10, the market risk premium is 8%, and the risk-free rate is 1%. What is Dyer's required rate of return on the stock?
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