Question: A stock sells for $ 5 0 . The next dividend will be $ 5 per share. If the rate of return earned on reinvested

A stock sells for $50. 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 a constant 20% of earnings in the firm, what must be the discount rate?
Note: Do not round your intermediate calculations. Enter your answer as a whole percent.

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