1.The Cammack Corporation wants to achieve a steady 9 percent growth rate. If it can achieve a return on equity of 14 percent, what percentage of earnings must Cammack retain for investment purposes?

The percentage of earnings Cammack must retain (or the profit-retention rate) is _____________

(Round to two decimal places.)

2.Bates Inc. pays a dividend of $3.00 and is currently selling for $ 30.95. If investors require a return of 15 percent on their investment from buying Bates stock, what growth rate would Bates Inc. have to provide the investors?

The growth rate Bates Inc. would have to provide the investors is ______-. (Round to two decimal places.)