Question: Problem 7 - 2 Stock Values [ LO 1 ] The next dividend payment by Im , Incorporated, will be $ 2 . 8 0

Problem 7-2 Stock Values [LO 1]
The next dividend payment by Im, Incorporated, will be $2.80 per share. The dividends are anticipated to maintain a growth rate of 5.25 percent forever. If the stock currently sells for $49.20 per share, what is the required return?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.

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