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ABC Limited will pay a $2.20 dividend next year (t=1) on its ordinary shares. The shares are currently selling at $79.89 per share.

ABC Limited will pay a $2.20 dividend next year (t=1) on its ordinary shares. The shares are currently selling at $79.89 per share. What is the market's required return on this investment if the dividend is expected to grow at 3% forever? (as a percentage to nearest two decimal places)

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