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Firm b has a 12% ROE, other things held constant, what would its expected gowth be if it paid out 25% of its earnings as
Firm b has a 12% ROE, other things held constant, what would its expected gowth be if it paid out 25% of its earnings as dividends? 75%
Can someone please show work on how you get this answer.
According to the text its (9%, 3%) I don't know how they got that answer.
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