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The firms current ROE is 15%; ROE is expected to remain at 15% until the firm reaches steady-state. ROE in steady-state is expected to be
The firms current ROE is 15%; ROE is expected to remain at 15% until the firm reaches steady-state. ROE in steady-state is expected to be 10%. This years EPS were $50. EPS projections for the next three years are: $16.66, $10, and $7.35. Solve for the firms reinvestment rate for this year and the next three years
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