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The next dividend payment by Hoffman, Inc., will be $2.95 per share. The dividends are anticipated to maintain a growth rate of 4.50 percent forever.

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The next dividend payment by Hoffman, Inc., will be $2.95 per share. The dividends are anticipated to maintain a growth rate of 4.50 percent forever. If the stock currently sells for $49.50 per share, what is the required return? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Required return %

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