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What is the sustainable growth rate

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Question - Fortress of Solitude Co. expects an earnings per share of $1.95 and reinvests 35% of its earnings. Management projects a rate of return of 11% on new projects and investors expect a 6% rate of return on the stock. What is the sustainable growth rate? Enter your answer as a percentage. Do not include the percentage sign in your answer.

Reference no: EM133017463

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