Question: The newspaper reported last week that Chen Enterprises earned $ 3 4 . 0 5 million this year. The report also stated that the firm's

The newspaper reported last week that Chen Enterprises earned $34.05 million this year. The report also stated that the firm's return on equity is 15 percent. The firm retains 85 percent of its earnings.
a. 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.)
b. 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.)
\table[[Earnings growth rate,%
 The newspaper reported last week that Chen Enterprises earned $34.05 million

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!