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Company A currently plows back 4 0 % of its earnings and earns a return of 2 0 % on this investment. The dividend yield
Company A currently plows back of its earnings and earns a return of on this investment. The dividend yield on the stock is Assuming that Company A can continue to plow back this proportion of earnings and earn a return on the investment, how rapidly will earnings and dividends grow? What is the expected return on Company A stock?
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