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(Measuring growth) Thomas, Inc.'s return on equity is 16 percent and management has plans to retain 24 percent of earnings for investment in the company. a. What will be the company's growth rate? b. How would the growth rate change if management (i) increased retained earnings to 32 percent or (ii) decreased retention to 14 percent?.

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(Measuring growth) Thomas, Inc.'s return on equity is 16 percent and management has plans to retain 24 percent of earnings for investment in the company. a. What will be the company's growth rate? b. How would the growth rate change if management (i) increased retained earnings to 32 percent or (ii) decreased retention to 14 percent?

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