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The next dividend payment by Savitz, Inc., will be $1.88 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever.

The next dividend payment by Savitz, Inc., will be $1.88 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. If the stock currently sells for $37 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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