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Summit Corporation has a dividend yield of 3%. Its equity cost of capital is 10% and its dividends are expected to grow at a constant

Summit Corporation has a dividend yield of 3%. Its equity cost of capital is 10% and its dividends are expected to grow at a constant rate.

If Summit Corporation has a return on investment of 10%, what is Summit's reinvestment (i.e., retention) rate - in percentage terms?

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