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A stock sells for $20. The next dividend will be $3 per share. If the rate of return earned on reinvested funds is a constant
A stock sells for $20. The next dividend will be $3 per share. If the rate of return earned on reinvested funds is a constant 10% and the company reinvests 30% of earnings in the firm, what must be the discount rate? (Do not round intermediate calculations. Enter your answer as a whole percent.)
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