Question: The next dividend payment by Business Services, Inc., will be $1.80 per share. The dividends are anticipated to maintain a 5.5 percent growth rate, forever.

The next dividend payment by Business Services, Inc., will be $1.80 per share. The dividends are anticipated to maintain a 5.5 percent growth rate, forever. If the stock currently sells for $48.00 per share, what is the required return?

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