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RedKite Inc. expects earnings next year of $4 per share. The dividend payout ratio will be 1/4. And, the firm invests the rest of its

RedKite Inc. expects earnings next year of $4 per share. The dividend payout ratio will be 1/4. And, the firm invests the rest of its earnings in projects that have an ROE of 12% per year.

Suppose the company will keep the payout ratio constant in the future. What is the growth rate of earnings per share? ______%

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