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The common stock of Siegfried Inc., a metal refining company, currently trades at $72 per share. The firm is expected to earn $5.92 per share
The common stock of Siegfried Inc., a metal refining company, currently trades at $72 per share. The firm is expected to earn $5.92 per share this year and is forecast to pay a dividend of $3.42 in one year. The company is thought to be in a mature industry and is expected to have constant growth in the future. If investors require an 8.5% return, what is the consensus growth rate for the firm?
a. 3.75% b. 4.75% c. 9.50% d. 12.25% e. 13.25%
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