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You have analyzed Stock A and must decide whether to purchase it. Your information is current is dividend is $1.00, expected dividend growth is 5%,

You have analyzed Stock A and must decide whether to purchase it. Your information is current is dividend is $1.00, expected dividend growth is 5%, expected inflation is 3% and the current market price is $20. What is your implied rate of return if you purchase the stock?

A. 10.00%

B. 10.25%

C. 12.00%

D. none of the above.

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