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So a firm is projecting their earnings next year to be $5.15 per share and the firm is expected to pay a dividend of $3.43.

So a firm is projecting their earnings next year to be $5.15 per share and the firm is expected to pay a dividend of $3.43. The investors' required rate of return is 9%. If the sustainable growth rate is 6%.



How would I find the rate of return earned by the firm on it's new investments?

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