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A common stock is purchased at a price equal to 12 times current earnings. During the next 8 years the stock pays no dividends, but

A common stock is purchased at a price equal to 12 times current earnings. During the next 8 years the stock pays no dividends, but earnings increase 40%. At the end of 8 years the stock is sold at a price equal to 20 times earnings. Find the effective annual yield rate earned on this investment.

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