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Suppose that a company has a beta of 1.25, the current dividend is 6 euros per share, the risk-free rate is 5% and the equity

Suppose that a company has a beta of 1.25, the current dividend is 6 euros per share, the risk-free rate is 5% and the equity market risk premium is 4%. The stock is currently trading at 94 euros. Determine the constant dividend growth rate that would be required to justify the market price of 94 euros.

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