CumChan Corporation reinvests 30 percent of its earnings in the corporation.The stock sells for $25, and the next dividend will be $1.25 per share.The discount rate is 7.5 percent.What is the rate of return on the company's reinvested funds?

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The Answer of CumChan Corporation reinvests 30 percent of its earnings in the corporation.The stock sells for $25, and the next dividend will be $1.25 per share.The discount rate is 7.5 percent.What is the rate of return on the company's reinvested funds?

CumChan Corporation Reinvests 30 Percent of Its Earnings in the Corporation.The