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QUESTION 12 The Growth Firm forecasts that its cash flows will increase by 5% per year indefinitely and the dividends paid to shareholders will increase

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QUESTION 12 The Growth Firm forecasts that its cash flows will increase by 5% per year indefinitely and the dividends paid to shareholders will increase at the same rate accordingly. It just paid a 4 annual dividend on its shares and the price of the shares is currently 40. What is the required rate of return of the shares? 9.00% 9.50% O 15.50% 10.00%

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