A stock sells for $50. The next dividend will be $4 per share. If the rate of
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| A stock sells for $50. The next dividend will be $4 per share. If the rate of return earned on reinvested funds is a constant 10% and the company reinvests 40% of earnings in the firm, what must be the discount rate?(Do not round intermediate calculations.) |
| Discount rate | % |
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