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Holt Fasner is considering purchasing the stock of United Mining Companies, which he plans to hold indefinitely. United Mining just paid an annual dividend of

Holt Fasner is considering purchasing the stock of United Mining Companies, which he plans to hold indefinitely. United Mining just paid an annual dividend of $2.00 and the price of the stock is $45 per share. The earnings and dividends of the company are expected to grow forever at a rate of 6 percent per year. What annual rate of return does Holt expect on his investment?

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