The Lo-Gro Co. in 2014 had equity of $15 million, net income of $1.8 million, of which 60% was paid out as dividends. The ROE and retained earnings for the Lo-Gro Co. are: Question 6 Answer a. 12%; $1,080,000. b. 12%; $720,000. c. 7.2%; $720,000. d. 4.8%; $720,000.