The newspaper reported last week that Bennington Enterprises earned $34.09 million this year. The report also stated that the firm’s return on equity is 18 percent. The firm retains 70 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.)

Answer rating: 100% (QA)

Solution To calculate the earnings growth rate we need to use the formula Earnings Growt... View the full answer