Easttown Productions Inc. reported plans to pay out 60% of its earnings as cash dividends to its shareholders. The firm will finance investment with retained earnings. Its recent return on equity (ROE) is 0.14, a figure that is expected to continue in the future. What will be the rate of growth of the firm's earnings over the year.
a. 6.3%
b. 8.4%
c. 10.2%
d. 5.6%
e. 9.6%
