5.23 The newspaper reported last week that Bradley Enterprises earned $20 million. The report also stated that

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5.23 The newspaper reported last week that Bradley Enterprises earned $20 million. The report also stated that the firm’s return on equity remains on its historical trend of 14 percent.

Bradley retains 60 percent of its earnings. What is the firm’s growth rate of earnings?

What will next year’s earnings be?

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Corporate Finance

ISBN: 9780071229036

6th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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