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Newton Inc. just paid an annual dividend of $0.95. Their dividends are expected to increase by 4% annually. Newton Company stocks are selling for $11.54

Newton Inc. just paid an annual dividend of $0.95. Their dividends are expected to increase by 4% annually. Newton Company stocks are selling for $11.54 a share. What is the capitalization rate on this stock?

A. 8.23% B. 12.2% C. 12.6% D. 13.9%

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