Explain the policy of reinvesting

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Donalda corp common stock sells today for $42 and it expects to pay an upcoming annual dividend of $2.02 per share. The company's future prospects have slowed down and it now has a policy of reinvesting 34% of its earnings. If investors expect a total return of 9.6% what is the firm's return on equity? (14.09%)

Reference no: EM133111632

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