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Sta ABC Corporation has earnings of $2 million. It planned to payout dividends of $1.2 million to shareholders. The company has a historical return on

Sta ABC Corporation has earnings of $2 million. It planned to payout dividends of $1.2 million to shareholders. The company has a historical return on equity of 16%. What is the firm growth rate on earning next year?

a.

4.6%

b.

6.4%

c.

3.4%

d.

4.7%

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