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The dividend yield on Clayton's Metals common stock for next year is 2.5%. The company just paid a $1.48 annual dividend and announced plans to

The dividend yield on Clayton's Metals common stock for next year is 2.5%. The company just paid a $1.48 annual dividend and announced plans to pay $1.54 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock according to Gordon's model? Input your answer with 2 decimals. Hint: compute prices and dividend growth.

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