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One method of determining the company s growth rate is from the fundamentals of the retention ratio and return on retained earnings. How does the

One method of determining the companys growth rate is from the fundamentals of the retention ratio and return on retained earnings. How does the growth ratebased on ValueLines 19971999 estimated retention ratio (Hint: use 1% all dividends to net profit) and expected return on retained earnings of 10.5%affect the return on the stock as compared to the initial return found in question 2?

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