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Please answer the following Question for finance. Bookmatch 8-9 (book/static) Question Help (Measuring growth) The Cammack Corporation wants to achieve a steady 7 percent growth
Please answer the following Question for finance.
Bookmatch 8-9 (book/static) Question Help (Measuring growth) The Cammack Corporation wants to achieve a steady 7 percent growth rate. If it can achieve a return on equity of 12 percent, what percentage of earnings must Cammack retain for investment purposes? The percentage of earnings Cammack must retain (or the profit-retention rate) is%. (Round to two decimal places.) (Common stock valuation) Daiton Inc. has a return on equity of 12.1 percent and retains 54 percent of its earnings for reinvestment purposes. It recently paid a dividend of $3.25 and the stock is currently selling for $42 a. What is the growth rate for Dalton Inc.? b. What is the expected return for Dalton's stock? c. If you require a 14 percent return, should you invest in the firm? a. What is the growth rate for Dalton Inc.? 96 (Round to two decimal places.) Bookmatch 8-14 (book/static) Question Help (Measuring growth) Given that a firm's return on equity is 18 percent and management plans to retain 40 percent of earnings for investment purposes, what will be the firm's growth rate? The firm's growth rate will be 6. (Round to two decimal places.)
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