Compute the required rate of return, Financial Management

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Compute the required rate of return

A firm pays a $2.50 dividend at the end of year one (D1), has a stock price of $127 (P0), and a constant growth rate (g) of 7 percent. a. Compute the required rate of return (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

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Financial Management: Compute the required rate of return

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