Question: Please answer in Word format. A. Medica Berhad is one of the listed companies in Bursa Malaysia that operates in the pharmaceutical industry. The recent

Please answer in Word format. A. Medica Berhad is one of

Please answer in Word format.

A. Medica Berhad is one of the listed companies in Bursa Malaysia that operates in the pharmaceutical industry. The recent Covid-19 pandemic has caused Medica earnings to grow rapidly. The company which generates about RM50 million a year in revenues has a net asset of RM525 million and stockholder's equity of RM300 million. Calculate the return on equity for this company if the company has a total debt of RM225 million and the return on asset is 10.4 %. Based on your results, calculate the earnings growth rate for Medica if the company's retention rate is 60%. Show all your working steps. (6 marks)

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