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The current EPS (EPS 0 ) is $ 6, g=4%, and r=14%. The reinvestment rate is currently 60%, but will become 35% after four years

  1. The current EPS (EPS0) is $ 6, g=4%, and r=14%. The reinvestment rate is currently 60%, but will become 35% after four years and will remain at this new level for ever. At what rate is EPS growing? Find out E1 to E7. Find out D0 to D7.

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