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FIN Inc. is trying to determine the required rate of return on its stock. The stock is current selling for $50 and yesterday the stock paid a dividend of$1.45. The dividend growth has previously been 7.5% and is expected to continue to grow at 7.5%. What is Fin stock required rate of return?

2.90

3.12

7.50

10.40

10.62

Financial Management, Finance

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