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Retained earnings don't pay interest or dividends, but investors still expect to earn a return on the earnings that the firm reinvests on their behalf. Use the following information to estimate an investor's required rate of return. Risk free rate Market rate- Growth: Borrowing rate- 3.00% 11.00% 6.00% 7.50% Beta= 1.005 Today's price $20.00 Anticipated dividend- $1.50 Tax rate= 25.00% Select one: a. 11.04% b. 11.02% C. 14.06% d. 11.06%

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User Manasi
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4 votes
287 because I solve it
answered
User Voislav Sauca
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