What must be the discount rate

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Reference no: EM131599619

A stock sells for $50. The next dividend will be $5 per share. If the rate of return earned on reinvested funds is a constant 10% and the company reinvests 60% of earnings in the firm, what must be the discount rate? (Do not round intermediate calculations. Enter your answer as a whole percent.)

Discount rate %

Reference no: EM131599619

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