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The market price for Earnest Corporation common stock is $45 per share. The price at the end of 1 year is expected to be $50,and

The market price for Earnest Corporation common stock is $45 per share. The price at the end of 1 year is expected to be $50,and dividends for next year should be 1.25

What is the expected rate of return? (Round to two decimal places.)

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