Tootsie Roll Inc. pays annual dividends that are expected to grow in perpetuity at a...
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Tootsie Roll Inc. pays annual dividends that are expected to grow in perpetuity at a constant rate. The last dividend (paid yesterday) was $1.0. The price of Tootsie Roll shares is currently $24. Tootsie Roll investors require a return of 10%. What growth rate of dividends is priced into the stock? Express your answer in percentage form rounded to one decimal place
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