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XYZ Corporation wants to achieve a steady 7% growth rate. If it can achieve a 12% return on equity, what percentage of earnings must XYZ retain for investment purposes?

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Solution Summary

The Plowback rate has been calculated for the required growth, given return on equity.

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XYZ Corporation wants to achieve a steady 7% growth rate.  If it can achieve a 12% return on equity, what ...

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