On one dollar raised from owners, a company is expected to generate a rate of return of 5%. Normally this company returns 75% of its profits to its…

On one dollar raised from owners, a company is expected to generate a rate of return of 5%. Normally this company returns 75% of its profits to its owners. What is this company expected to grow by in the future?

a)1.25%

b)3.75%

c)6.67%

d)20.0%

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