Harris owns one share of stock of Fairfax Paint and one share of stock of Litchfield Design. The total value of his holdings is 128 dollars. Both stocks pay annual dividends that are expected to continue forever. The expected return on Fairfax Paint stock is 15.47 percent and its annual dividend is expected to remain at 11.79 dollars forever. What is the next dividend paid by Litchfield Design expected to be if the stock has an annual return of 13.17 percent and dividends are expected to grow by 3.6 percent annually? The next dividend for both firms stocks will be paid in one year.

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Kwame owns one share of stock of Fairfax Paint and one share of stock of Litchfield Design. The total value of his holdings is 131 dollars. Both stocks pay annual dividends that are expected to continue forever. The expected return on Fairfax Paint stock is 19.6 percent and its annual dividend is expected to remain at 12.03 dollars forever. The expected return on Litchfield Design stock is 12.34 percent. The next dividend paid by Litchfield Design is expected to be 4.68 dollars and all subsequent dividends are expected to grow at a constant rate. What growth rate is expected for Litchfield Design dividends? The next dividend for both firms stocks will be paid in one year. Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.