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Sherbo Ltd paid a dividend this morning of $2.50 per common share. The dividend is expected to grow at a constant rate of 5% per

Sherbo Ltd paid a dividend this morning of $2.50 per common share. The dividend is expected to grow at a constant rate of 5% per year. If the stock is selling for $100 per share, the stockholders expected rate of return is ________.
7.50%
10.07%
7.63%
13.00%
None of the above

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