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Elaine is evaluating a stock that she is interested in investing in. She requires a rate of return on her investment of 13%. She uses

Elaine is evaluating a stock that she is interested in investing in. She requires a rate of return on her investment of 13%. She uses the constant growth of dividends model. The current dividend is $3 and the current price of the stock is $37.50. What is the dividend growth rate implied by the price?

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5%

-1%

0%

4%

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