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A stock sells for $40. The next dividend will be $2 per share. If the return on equity ROE is a constant 15% and the

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A stock sells for $40. The next dividend will be $2 per share. If the return on equity ROE is a constant 15% and the company reinvests 40% of earnings in the firm, what must be the opportunity cost of capital? (Do not round intermediate calculations.) Cost of Capital [ 11%

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