Question
(Measuring growth)Thomas, Inc.'s return on equity is 19 percent and management has plans to retain 25 percent of earnings for investment in the company. a.
(Measuring growth)Thomas, Inc.'s return on equity is 19 percent and management has plans to retain 25 percent of earnings for investment in the company.
a. What will be the company's growth rate?
b. How would the growth rate change if management (i) increased retained earnings to 34 percent or (ii) decreased retention to 11 percent?
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Asset Allocation From Theory To Practice And Beyond
Authors: Mark P. Kritzman, William Kinlaw, David Turkington, Harry M. Markowitz
1st Edition
1119817714, 978-1119817710
