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XYZ Company stock currently sells for $40.75 per share. The company is expected to pay a dividend of $1.91 per share next year, and analysts

XYZ Company stock currently sells for $40.75 per share. The company is expected to pay a dividend of $1.91 per share next year, and analysts project that dividends should increase at 3.51 percent per year for the indefinite future. What must the relevant discount rate (in percent) be for XYZ stock? Answer to two decimals.

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