There are many different types of "good debt" to have. Good debt with on time payments helps increase your credit score tremendously overtime because it shows lenders you can borrow money and pay it back on time. Paying your bills on time and sticking to your budget can contribute to payments paying off good debt. A mortgage is an example of good debt.
We are forced to make choices in our day to day life because our resources are limited.
An example of this limited resources is our financial resources, we need to work to earn money to buy our necessities to live a comfortable life. Simply put, no work no pay. No pay, no food. No food, no life. So, no choice but work.
Answer: a). Firm's growth rate = 10.5%
b). Next year's earnings = $30,940,000.00
Explanation: Earnings growth rate is the percentage change in earnings given specific variables.
The firm's earnings growth rate g = Return on equity (ROE) × Retained earnings (b) = 0.15(0.70)
g =0.105 or 10.5%
In finding next year's earnings, we multiply the current earnings times one plus the growth rate.
Next year's earnings = Current earnings(1 + g)
Next year's earnings = 28,000,000(1 + 0.105)
Next year's earnings = $30,940,000.00
