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Johnstown Corp. stock is currently selling for $85. It is expected to pay a dividend of $4.50 at the end of the year. Dividends are

Johnstown Corp. stock is currently selling for $85. It is expected to pay a dividend of $4.50 at the end of the year. Dividends are expected to grow at a constant rate of 7% indefinitely. Compute the required rate of return on Johnstown Corp. stock.

		10.48%
		12.66%
		12.29%
		16.77%

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