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34. Winfast Inc return on equity (ROE) is 17% and the board of directors propose to retain 30% of earnings for reinvestment in the business.

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34. Winfast Inc return on equity (ROE) is 17% and the board of directors propose to retain 30% of earnings for reinvestment in the business. (a) Calculate the growth rate of Winfast Inc. (2 marks) (b) How will the growth rate change if (i) retained earnings increas to 40%, or (ii) retained earnings decrease to 25%? (4 marks)

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