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Problem 7-15 Constant-Growth Model (LO3) A stock sells for $25. The next dividend will be $4 per share. If the rate of return earned on

Problem 7-15 Constant-Growth Model (LO3) A stock sells for $25. The next dividend will be $4 per share. If the rate of return earned on reinvested funds is a constant 15% and the company reinvests 40% of earnings in the firm, what must be the discount rate? (Enter your answer as a whole percent.) Discount rate

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