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The price of a stock in the market is $75. You know that the firm has just paid a dividend of $2.50 per share (i.e.,

The price of a stock in the market is $75. You know that the firm has just paid a dividend of $2.50 per share (i.e., D0 = 2.50). The dividend growth rate is expected to be 6 percent forever. What is the investors' required rate of return for this stock?

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