Question: Problem 7 - 1 5 Constant - Growth Model ( LO 2 ) A stock sell$ for $ 6 0 . The next dividend will

Problem 7-15 Constant-Growth Model (LO2)
A stock sell$ for $60. The next dividend will be $3 per share. If the rate of return earned on reimvested funds is a constant 10% and the company reinvests a constant 40% 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.
Discount rate
Problem 7 - 1 5 Constant - Growth Model ( LO 2 )

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