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A company is expected to have earnings per share of $4.50 this year and to pay a dividend of $2.40. The discount rate for the

A company is expected to have earnings per share of $4.50 this year and to pay a

dividend of $2.40. The discount rate for the stock is 11.4% and the rate of return on

reinvested earnings is 15.2%. What is the sustainable growth rate?

3.80%

5.32%

6.08%

7.09%

8.11%

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