Earnings must cammack retain for investment? purposes

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Reference no: EM131936411

1. The Cammack Corporation wants to achieve a steady 9 percent growth rate. If it can achieve a return on equity of 14 ?percent, what percentage of earnings must Cammack retain for investment? purposes?

The percentage of earnings Cammack must retain? (or the? profit-retention rate) is _____________

?(Round to two decimal? places.)

2. Bates Inc. pays a dividend of ?$3.00 and is currently selling for ?$ 30.95. If investors require a return of 15 percent on their investment from buying Bates? stock, what growth rate would Bates Inc. have to provide the? investors?

The growth rate Bates Inc. would have to provide the investors is ______-. ?(Round to two decimal? places.)

Reference no: EM131936411

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