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(Common stock valuation) Abercrombie & Fitch's common stock pays a dividend of $1.25. It is
currently selling for $34.13. If the firn investors require a return of 12 percent on their investment
from buying Abercrombie & Fitch stock, what growth rate would Abercro Fitch have to provide the
investors? The growth rate Abercrombie & Fitch would have to provide the investors is %. (Round
to two decimal places.)

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  • 1. (Common stock valuation) Abercrombie & Fitch's common stock pays a dividend of $1.25. It is currently selling for $34.13. If the firn investors require a return of 12 percent on their investment from buying Abercrombie & Fitch stock, what growth rate would Abercro Fitch have to provide the investors? The growth rate Abercrombie & Fitch would have to provide the investors is %. (Round to two decimal places.)