Please answer in Word format.

A. Medica Berhad is one of the listed companies in Bursa Malaysia that operates in the pharmaceutical industry. The recent Covid-19 pandemic has caused Medica earnings to grow rapidly. The company which generates about RM50 million a year in revenues has a net asset of RM525 million and stockholder's equity of RM300 million. Calculate the return on equity for this company if the company has a total debt of RM225 million and the return on asset is 10.4 %. Based on your results, calculate the earnings growth rate for Medica if the company's retention rate is 60%. Show all your working steps. (6 marks)