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The common stock of Zulu Ltd. is selling on the market for $22.33. The company will pay an annual dividend of $1.5 per share next

The common stock of Zulu Ltd. is selling on the market for $22.33. The company will pay an annual dividend of $1.5 per share next year. Dividends are projected to grow at 5.5% p.a. If you purchase the stock at the current market price, what is the expected rate of return? Choose the closest answer.

a.

11.82%
b.

12.59%
c.

12.22%
d.

13.17%

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