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The dividends of CMC Ltd are expected to grow at a constant annual rate over the foreseeable future. The company has recently paid a dividend
The dividends of CMC Ltd are expected to grow at a constant annual rate over the foreseeable future. The company has recently paid a dividend per share of $1.00, and the required rate of return on the shares is 10% p.a. Based on this information, the current price of the shares has been estimated at $25.00. The constant annual growth rate in dividends that is implied by this information is closest to:
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