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McKenna Motors is expected to pay a $4 per-share dividend at the end of the year (D1 = $4). The stock sells for $18 per

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McKenna Motors is expected to pay a $4 per-share dividend at the end of the year (D1 = \$4). The stock sells for $18 per share and its required rate of return is 27.7 percent. The dividend is expected to grow at a constant rate, g, forever. What is the growth rate, g, for this stock? \begin{tabular}{l} 5.48% \\ 5.28% \\ \hline 5.08% \\ \hline 5.68% \\ \hline 5.88% \end{tabular}

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