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Given a company has a 10% ROE this year and expected ROE for next year is 12% (on both old and new projects). And the

Given a company has a 10% ROE this year and expected ROE for next year is 12% (on both old and new projects). And the company has a payout ratio of 80%.

Question: what will the firm's growth in earning be in next year?.

I got an answer of 22.4% which seems a bit too large. Did I make any mistake?

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