A stock sells for 40 the next dividend will be 4 per share, Ask an Expert

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A stock sells for $40. The next dividend will be $4 per share. If the rate of return earned on reinvested funds is a constant 10% and the company reinvests 40% 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 %

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