XYZ Enterprises currently distributes 20 of its earnings to shareholders If the expected return on the firm 's new investment is 12 , what is the company 's growth rate Show and explain how management can increase the company 's growth rate ...

1 Growth rate of the company We need to find the sustainable growth rate of the c ...

XYZ Enterprises currently distributes 20% of its earnings to shareholders. If the expected return on the firm's

Question:

XYZ Enterprises currently distributes 20% of its earnings to shareholders. If the on the firm's new investment is 12%, what is the company's growth rate? Show and explain how management can increase the company's growth rate.
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...