Problem:
The newspaper reported last week that Bennington Enterprises earned $34.13 million this year. The report also stated that the firm's return on equity is 12 percent. Bennington retains 70 percent of its earnings.
Required:
Question 1: What is the firm's earnings growth rate?
Question 2: What will next year's earnings be?
Note: Please provide equation and explain comprehensively and give step by step solution.