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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.

5.6%

C.

10.2%

D.

9.6%

E.

8.4%

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