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Total book equity ofvthe firm equals 1 0 0 0 0 0 0 profit 1 0 0 0 0 0 Reinvestment 8 0 0 0

Total book equity ofvthe firm equals

1000000

profit

100000

Reinvestment

80000

Return on equity?

Plow back ratio

= ?

Profit growth rate caused by this investment

= ?

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