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Question
Beaver Corporation stock is currently selling for $58.00. It is expected to pay a dividend of $5.00 at the end of the year. Dividends are expected to grow at a constant rate of 7.5% indefinitely. Compute the required rate of return on Beaver Corporation stock.A) 12.48%
B) 15.65%
C) 13.64%
D) 16.12%
Answer
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