The newspaper reported last week that Jernigan Enterprises earned $34.14 million this year. The report also...

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The newspaper reported last week that Jernigan Enterprises earned $34.14 million this year. The report also stated that the firm's return on equity is 13 percent. The firm retains 70 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, e.g., 1,234,567.) The newspaper reported last week that Jernigan Enterprises earned $34.14 million this year. The report also stated that the firm's return on equity is 13 percent. The firm retains 70 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, e.g., 1,234,567.)

Answer rating: 100% (QA)

a To calculate the earnings growth rate well use the formula textE... View the full answer