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Shack Diesel Company has stock trading today at $40.60 per share. The company just paid a $2.57 per share dividend. Kenny Smith, an analyst, believes
Shack Diesel Company has stock trading today at $40.60 per share. The company just paid a $2.57 per share dividend. Kenny Smith, an analyst, believes investors should seek a 10.00% return to hold the stock. If we value Shack Diesel using the constant growth model, what dividend growth rate would justify these assumptions?
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