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Kwik Industries is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $32.50 per share, and it's required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate? (Please show work)

A) 3.85%

B) 4.93%

C) 5.39%

D) 6.65%

E) 14.35%

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91608165

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