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Eastern Electric currently pays a dividend of about $176 per share and sells for $35 a share. a. If Investors believe the growth rate of

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Eastern Electric currently pays a dividend of about $176 per share and sells for $35 a share. a. If Investors believe the growth rate of dividends is 2% per year, what is the opportunity cost of capital? (Do not round Intermediate calculations. Round you answer to 2 decimal places.) Cost of Capital b. If Investors' opportunity cost of capital is 10%, what must be the growth rate they expect of the firm? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Growth rate c. If the sustainable growth rate is 4% and the plowback ratio is 2. what must be the return on equity ROE? (Round your answer to 2 decimal places.) ROE

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