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Kirkevue Industries pays out all its earnings as dividends and has a share price of $23. In order to expand, Kirkevue announces it will cut
Kirkevue Industries pays out all its earnings as dividends and has a share price of $23. In order to expand, Kirkevue announces it will cut its dividend payments from $2.00 to $1.60 per share and reinvest the retained funds. What is the growth rate that should be achieved on the reinvested funds to keep the equity cost of capital unchanged?
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