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You are thinking of investing in the stocks of Barbados Ltd . The stocks are selling for $ 5 0 and the last dividend paid

You are thinking of investing in the stocks of Barbados Ltd. The stocks are selling for $50 and the last dividend paid was $5.50 per share. Dividends are expected to grow at 6% per annum. The stock market composite index is currently 10% and this stock has a beta of 1.25. The treasury bill rate is currently 2.5%. Required: Calculate the best estimate of the stocks return. (Use 4 decimal places).

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