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Last year, when the stock of Walnut Co. was selling for $59 a share, the dividend yield was 3.5 percent. Today, the stock is selling

Last year, when the stock of Walnut Co. was selling for $59 a share, the dividend yield was 3.5 percent. Today, the stock is selling for $65 a share. What is the current required return on this stock if the company maintains a constant dividend growth rate of 5 percent?

10.16 percent

11.72 percent

9.13 percent

8.34 percent

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