Question
Media Music Inc. reported earnings of $42 million. It plans to retain 65% of its earnings and pay out the rest as cash dividends to
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Media Music Inc. reported earnings of $42 million. It plans to retain 65% of its earnings and pay out the rest as cash dividends to its shareholders. Its recent return on equity (ROE) is .16, a figure that is expected to continue in the future. How much will the firm's earnings grow over the year?
A. 8.1%
B. 9.9%
C. 10.4%
D. 11.2%
E. 12.1%
Media Music Inc. reported earnings of $42 million. It plans to retain 65% of its earnings and pay out the rest as cash dividends to its shareholders. Its recent return on equity (ROE) is .16, a figure that is expected to continue in the future. How much will the firm's earnings grow over the year?
| A. | 8.1% | |
| B. | 9.9% | |
| C. | 10.4% | |
| D. | 11.2% | |
| E. | 12.1% |
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Entrepreneurial Finance And Accounting For High-Tech Companies
Authors: Frank J Fabozzi
1st Edition
0262336901, 9780262336901
