Exxo Corporation wishes to maintain a 12 percent growth rate in equity. If year 1 equity was $600 and year 2 net income is projected at $150, what retention ratio must Exxo have to maintain the 12 percent growth in equity?

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The Answer of Exxo Corporation wishes to maintain a 12 percent growth rate in equity. If year 1 equity was $600 and year 2 net income is projected at $150, what retention ratio must Exxo have to maintain the 12 percent growth in equity?

Exxo Corporation Wishes to Maintain a 12 Percent Growth Rate