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3. Exim Inc. reported a return on capital of 12% on its existing assets and a reinvestment rate of 60% in the most recent year.
3. Exim Inc. reported a return on capital of 12% on its existing assets and a reinvestment rate of 60% in the most recent year. It expects to improve its return on capital to 15% next year on both its existing and new investments, while maintaining its existing reinvestment rate. What will the expected growth rate be next year?
a. 7.2%
b. 9.0%
c. 29.0%
d. 32.2%
e. 34.0%
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