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Chester Financial Corp had a return on equity of 18%. The corporations earnings per share was $4.00, its dividend payout ratio was 30% and its

Chester Financial Corp had a return on equity of 18%. The corporations earnings per share was $4.00, its dividend payout ratio was 30% and its profit-retention rate was 70%. If these relationships continue, what will be the Chester Financial Corp's internal growth rate?

Select one:

a. 28.0%

b. 12.6%

c. 5.4%

d. 70.0%

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