This growth rate is an accurate estimate of firms future, Financial Management

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This growth rate is an accurate estimate of firms future

A firm currently has a stock price of $50 per share. The dividend paid last year was $2.45 per share and the long-term growth rate for this company's dividends have been 2% per year. This growth rate is an accurate estimate of the firm's future dividend growth rate. Given this Information, what is the rate of return that investors require for investing in this stock?

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