Question: The next dividend payment by DEF, Inc., will be $4.15 per share. The dividends are anticipated to maintain a growth rate of 5.74 percent forever.

The next dividend payment by DEF, Inc., will be $4.15 per share. The dividends are anticipated to maintain a growth rate of 5.74 percent forever. If the stock currently sells for $31.38 per share, what is the required return (in percent)?

Answer to two decimals

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