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The market value of ABCs stock is $40.00. The cost of capital is 12.2%. If the current year dividend is $2, the market price must

The market value of ABCs stock is $40.00. The cost of capital is 12.2%. If the current year dividend is $2, the market price must be forecasting a growth rate?

a. 6.86% b. 5.13% c. 5.13% d. 6.13%

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