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(Measuring growth) Thomas, Inc's return on equity is 13 percent and management has plans to
retain 22 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 31 percent or (ii) decreased retention to 13 percent? a. The company's growth rate will be %.
(Round to two decimal places.)

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(Measuring growth) Thomas, Incs return on equity is 13 percent a.pdf

  • 1. (Measuring growth) Thomas, Inc's return on equity is 13 percent and management has plans to retain 22 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 31 percent or (ii) decreased retention to 13 percent? a. The company's growth rate will be %. (Round to two decimal places.)