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MTM Part 1- MotorTrend Magazine earns a book rate of return (ROE) of 12%. It reinvests one-half its earnings and pays out the other half

MTM Part 1- MotorTrend Magazine earns a book rate of return (ROE) of 12%. It reinvests one-half its earnings and pays out the other half as cash dividends. The nominal cost of capital is 12%.

A). Given this ROE and dividend payout ratio, what is the growth rate of Motor Trend Magazines earnings and dividends?

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