The firm plans to increase the dividend by 44 percent per


ABC Inc.'s stock is currently selling for $37.59 per share. The company just paid its first annual dividend of $4.16 a share. The firm plans to increase the dividend by 4.4 percent per year indefinitely. What is the required rate of return on equity? Enter your answer in percentages rounded off to two decimal points.

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Financial Management: The firm plans to increase the dividend by 44 percent per
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