8-19A. (Measuring gnrwth) XYZ's return on equity is 17 percent and management has plans to retain 30

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8-19A. (Measuring gnrwth) XYZ's return on equity is 17 percent and management has plans to retain 30 percent of earnings for investment in the company.

a. What will be the company's growth rate?

b. How would the growth rate change if management (i) increased retained earnings to 40 percent or (ii) decreased retention to 25 percent?

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Financial Management Principles And Applications

ISBN: 9780131450653

10th Edition

Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.

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