X Problem 8-18 (similar to) (Common stock valuation) Abercrombie & Fitch's common stock pays a dividend of $2.75. It is currently selling for $38.05. If the firm's investors require a return of 13 percent on their investment from buying Abercrombie & Fitch stock, what growth rate would Abercrombie & Fitch have to provide the investors? The growth rate Abercrombie & Fitch would have to provide the investors is %. (Round to two decimal places.) ercrombie & Fitch's common stock pays a dividend of $2.75. It is currently selling for $38.05. If the firm's investors re om buying Abercrombie & Fitch stock, what growth rate would Abercrombie & Fitch have to provide the investors? & Fitch w X That's incorrect. STEP 1: FORMULATE A SOLUTION STRATEGY The growth rate can be found by solving for g in the following constant-growth, common-stock valuation equation: last year dividend x (1 + growth rate) Common stock value = required rate of return - growth rate Do *(1 +g) CS cs - 9 OK wer box and then click Check