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The XYZ Company, whose common stock is currently selling for $40 per share, is expected to pay a $2.00 divident in the coming year. If

The XYZ Company, whose common stock is currently selling for $40 per share, is expected to pay a $2.00 divident in the coming year. If investors believe that the expected rate of return on XYZ is 14%, what growth rate in dividends must be expected (please show your calcuation)

a. 5% b. 14% c. 9% d. 6%

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