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You own 300 shares of Abco stock. The current price of Abco is $50. The firm plans to issue a dividend of $3.50 per share
You own 300 shares of Abco stock. The current price of Abco is $50. The firm plans to issue a dividend of $3.50 per share next year. If the dividend growth rate is expected to be 3% every year, what is the required rate of return for Abco stock?
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