Question: Compost Inc. ( CI ) has a 8 % return on equity, a reinvestment ratio of 7 0 % and is expected to pay a

Compost Inc. (CI) has a 8% return on equity, a reinvestment ratio of 70% and is expected to pay a $7 dividend. Suppose that the business is growing at 2% per year, and the price per share is $180. What is the expected rate of return from purchasing this stock?
7.17%
5.89%(confident in this)
6.12%
6.49%

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