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The Wagner coompany's stock is listed on NASDAQ. The current stock price is $50. The next dividend will be $5 per share. If Wagner reinvests

The Wagner coompany's stock is listed on NASDAQ. The current stock price is $50. The next dividend will be $5 per share. If Wagner reinvests a constant 40% of its earnings, and the rate of return on reinvested funds is a constant 12%, what must be the discount rate? Input your answers with two decimal points.

Hint: calculate the growth rate to start with.)

Answer %[a]:

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