Problem 9-12

The constant-growth dividend discount model can be used both for the valuation of companies and for the estimation of the long-term total return of a stock.

Assume:	$10	=	Price of a Stock Today
	10%	=	Expected Growth Rate of Dividends
	$0.82	=	Annual Dividend One Year Forward

Using only the preceding data, compute the expected long-term total return on the stock using the constant-growth dividend discount model. Do not round intermediate calculations. Round your answer to two decimal places.

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