What is the sustainable growth rate

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Problem - Shield Corp. expects an earnings per share of $2.07 and reinvests 40% of its earnings. Management projects a rate of return of 9% on new projects and investors expect a 9% rate of return on the stock. What is the sustainable growth rate? Given a sustainable growth rate of 3.6%, what is the price of the stock with growth?

Reference no: EM132991251

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