The newspaper reported last week that Bennington Enterprises earned $34.12 million this year. The report also stated that the firm's return on equity is 14 percent. The firm retains 75 percent of its earnings. What is the firm's earnings growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What will next year's earnings be? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) Earnings growth rate Next year's earnings %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The newspaper reported last week that Bennington Enterprises earned $34.12 million
this year. The report also stated that the firm's return on equity is 14 percent. The firm
retains 75 percent of its earnings.
What is the firm's earnings growth rate? (Do not round intermediate calculations and
enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
What will next year's earnings be? (Do not round intermediate calculations and enter
your answer in dollars, not millions of dollars, rounded to the nearest whole number,
e.g., 1,234,567.)
Earnings growth rate
Next year's earnings
A
3
WEEK 4_HW_Sol....docx
4
0
%
5
%
Chapter
f6 40
6
&
7
8
C
Transcribed Image Text:docx The newspaper reported last week that Bennington Enterprises earned $34.12 million this year. The report also stated that the firm's return on equity is 14 percent. The firm retains 75 percent of its earnings. What is the firm's earnings growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What will next year's earnings be? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) Earnings growth rate Next year's earnings A 3 WEEK 4_HW_Sol....docx 4 0 % 5 % Chapter f6 40 6 & 7 8 C
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