Exim inc reported a return on capital of 12 on its existing


Exim Inc. reported a return on capital of 12% on its existing assets and a reinvestment rate of 60% in the most recent year. It expects to improve its return on capital to 15% next year on both its existing and new investments, while maintaining its existing reinvestment rate. What will the expected growth rate be next year?

a. 7.2%

b. 9.0%

c. 29.0%

d. 32.2%

e. 34.0%

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Financial Management: Exim inc reported a return on capital of 12 on its existing
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