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1) Shield Corp. expects an earnings per share of $1.33 and reinvests 35% of its earnings. Management projects a rate of return of 3% on

1) Shield Corp. expects an earnings per share of $1.33 and reinvests 35% of its earnings. Management projects a rate of return of 3% on new projects and investors expect a 5% rate of return on the stock. What is the sustainable growth rate? Enter your answer as a percentage. Do not include the percentage sign in your answer.

2) Given a sustainable growth rate of 1.05%, what is the price of the stock with growth?

Enter your response below rounded to 2 DECIMAL PLACES.

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