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The risk-free rate is 2%, the market risk premium is 6%. A company has ROE=12% and beta=1.2, and P/E=25. What is its reinvestment rate b?

The risk-free rate is 2%, the market risk premium is 6%. A company has ROE=12% and beta=1.2, and P/E=25. What is its reinvestment rate b? 0.65 0.35 0.31 0.60 0.48 0.72 0.53

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