Philip Morris, a leading consumer products company, was forced to cut prices on its Marlboro brand of cigarettes in early 1993 to combat loss of sales to generic competitors. You are attempting to assess the effects on expected growth as a consequence.

In 1992, Philip Morris had earnings before interest and taxes of $10 billion on sales of $60 billion. The firm also had total assets of $30 billion in that year. As a consequence of its price cuts in 1993, the pre-interest profit margin is expected to decline to 9%. The debt/equity ratio is expected to remain unchanged at 1.00, and the interest rate will remain at 6.5%. (The tax rate is 36%.) Philip Morris pays out 65% of its earnings as dividends.

Based upon 1992 numbers, what is the expected growth rate in earnings?