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The current price of Rocky Mountain Ltd shares is $75. Dividend one year from today is $1.05 and is expected to grow thereafter at 5%

The current price of Rocky Mountain Ltd shares is $75. Dividend one year from today is $1.05 and is expected to grow thereafter at 5% indefinitely. What is the required rate of return on Rocky Mountains shares?

a.

7.77%
b.

6.33%
c.

6.00%
d.

7.41%
e.

6.40%

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