What is the sustainable growth rate

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Fortress of Solitude Co. expects an earnings per share of $1.37 and reinvests 30% of its earnings. Management projects a rate of return of 13% on new projects and investors expect a 7% 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.

Enter your response below rounded to 2 DECIMAL PLACES.

Reference no: EM132466567

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