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Business, 01.11.2019 04:31 robert7248

Metatrend’s stock will generate earnings of $6 per share this year. the discount rate for the stock is 15%, and the rate of return on reinvested earnings also is 15%. a. find both the growth rate of dividends and the price of the stock if the company reinvests the following fraction of its earnings in the firm: (i) 0%; (ii) 40%; (iii) 60%. (do not round intermediate calculations. enter the growth rates as a whole percent.)

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