In their most recent fiscal year, XYZ, Inc. had net income of $20 million and total common equity of $200 million. Also, XYZ, Inc. pays out 30% of its earnings as dividends. Using the Retention Growth...

In their most recent fiscal year, XYZ, Inc. had net income of $20 million and total common equity of $200 million.  Also, XYZ, Inc. pays out 30% of its earnings as dividends.  Using the Retention Growth Model, what is your best estimate of XYZ’s expected growth rate?