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Question
Beefcake Burgers' stock has a current market value of $80.65. The company just paid a dividend equal to $3.50 per share, which is expected to grow at a constant rate of 6 percent forever into the future. What is the rate of return required by Beefcake's marginal investors?
a. 10.3%
b. 6.0%
c. 10.6%
d. 15.0%
e. There is not enough information to answer this question.
Answer
This answer is hidden. It contains 11 characters.
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