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The next dividend payment by Savitz, Inc., will be $4.15 per share. The dividends are anticipated to maintain a growth rate of 3 percent forever.

The next dividend payment by Savitz, Inc., will be $4.15 per share. The dividends are anticipated to maintain a growth rate of 3 percent forever. If the stock currently sells for $43 per share, what is the required return?

Multiple Choice

12.40%

9.65%

12.65%

3.00%

12.02%

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