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ABC Corp enjoys growth in earnings only to the extent that it retains earnings. Its earnings growth is 5% and retained earnings ratio is 25%.
ABC Corp enjoys growth in earnings only to the extent that it retains earnings. Its earnings growth is 5% and retained earnings ratio is 25%. What is its return on retained earnings? Choose the nearest answer.
a.
25%
b.
1%
c.
30%
d.
30%
e.
20%
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