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Somnabolous has a policy of paying a $2.40 per-share dividend every year. This dividend is expected to remain constant. What is the required return on

Somnabolous has a policy of paying a $2.40 per-share dividend every year. This dividend is expected to remain constant. What is the required return on this stock if it is currently trading at $20.20?

a. 12.84%

b. 7.39%

c. 12.38%

d. 7.95%

e. 11.88%

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