AAA's return on asset is 15 percent, and AAA pays out 60 percent of its earnings through dividends. Based on the following information, please answer the question(s). Assumptions (1) A firm does not issue or buy back new shares or bonds. (2) Without retained earnings, Earnings Next Year = Earnings This Year" (3) ROE remains the same throughout time. (4) Dividend payout ratio remains the same throughout time. Based on the relationship between the dividend payout ratio and the dividend growth rate, please calculate AAA's earnings growth rate. What is AAA's earnings growth rate? Consider a project. (Assume that the manager will make a decision to maximize the shareholde The cost to take the project = $ 100 million The cost to take the project is paid by shareholders. Firm value without project State Normal Boom Probability of the state 0.7 0.3 Firm value $200 million $500 million Firm value with project State Normal Boom Probability of the state 0.7 0.3 Firm value $400 million $700 million For the manager to take the project, what is the maximum debt amount? R 2 Hi every 19 109 lobbie Low-Risk Project felt lonel 661 level 01 667 7201 fish State Normal Boom Probability of the state 0.5 0.5 Firm value $100 million $200 million High-Risk Project 145 State Probability of the state Firm value Normal 0.5 $50 million Boom 0.5 $240 million upside For the manager to take the Low-Risk Project, what is the maximum debt amount? Assume that the manager will make a decision to maximize the shareholder's value. Consider two mutually exclusive projects