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Easttown Productions Inc. reported plans to pay out 60% of its earnings as cash dividends to its shareholders. The firm will finance investment with retained

Easttown Productions Inc. reported plans to pay out 60% of its earnings as cash dividends to its shareholders. The firm will finance investment with retained earnings. Its recent return on equity (ROE) is 0.14, a figure that is expected to continue in the future. What will be the rate of growth of the firm's earnings over the year.

a. 6.3%

b. 8.4%

c. 10.2%

d. 5.6%

e. 9.6%

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