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Sure Tool Company is expected to pay a dividend of $2 in the upcoming year....

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Finance

Sure Tool Company is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 14%. The beta of Sure Tool Company's stock is 1.25.

If Sure's intrinsic value is $25.00 today, what must be its growth rate?

Multiple Choice

a.) 10.25%

b.) 10%

c.) 8.5%

d.) 7%

e.) 6.55%

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