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Franklin Corporation is expected to pay a dividend of $1.24 per share at the end of the year (D1 = $1.24). The stock sells for

Franklin Corporation is expected to pay a dividend of $1.24 per share at the end of the year (D1 = $1.24). The stock sells for $32.40 per share, and its required rate of return is 6.6%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?

(Round your answer to 2 decimal places.)

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