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Problem:

The newspaper reported last week that Bennington Enterprises earned $34.13 million this year. The report also stated that the firm's return on equity is 12 percent. Bennington retains 70 percent of its earnings.

Required:

Question 1: What is the firm's earnings growth rate?

Question 2: What will next year's earnings be?

Note: Please provide equation and explain comprehensively and give step by step solution.

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Category:- Basic Finance
Reference No.:- M91149588

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