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Start-Up Industries is a new firm that has raised $300 million by selling shares of stock. Management plans to earn a 18% rate of return

Start-Up Industries is a new firm that has raised $300 million by selling shares of stock. Management plans to earn a 18% rate of return on equity, which is more than the 12% rate of return available on comparable-risk investments. Half of all earnings will be reinvested in the firm.

a.
What will be Start-Up

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