Which company grows faster for the next year

Which company grows faster for the next year

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Reference no: EM131464426

Company A expects to earn 10% of its book equity, and will reinvest 50% of that. Company B expects to earn 12% of its book equity, and will pay out 80% of its earnings to shareholders. Which company grows faster for the next year?

. Company A

B. Company B

C. Same growth rate

D. Not enough information

Reference no: EM131464426

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