A stock sells for $25. The next dividend will be $5 per share. If the rate of
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Question:
A stock sells for $25. The next dividend will be $5 per share. If the rate of return earned on reinvested funds is a constant 10% and the company reinvests 30% of earnings in the firm, what must be the discount rate? (Enter your answer as a whole percent.)
Discount Rate | % |
Expert Answer:
Heres how to calculate the discount rate Calculate the total expected return per share ... View the full answer
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