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Compost Inc. (CI) has a 8% return on equity, a reinvestment ratio of 70% and is expected to pay a $7 dividend. Suppose that the

Compost Inc. (CI) has a 8% return on equity, a reinvestment ratio of 70% and is expected to pay a $7 dividend. Suppose that the business is growing at 2% per year, and the price per share is $180. What is the expected rate of return from purchasing this stock?

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