Question: Here are two companies: Young corporation and Mature corporation. Young Corporation grows very rapidly, does not pay any dividends and retains all its profits. Mature Corporation stopped growing a long time ago, generates sizable cash flows and pays out dividends.
![2481_Young.png](https://secure.tutorsglobe.com/CMSImages/2481_Young.png)
Calculate:
• Young's yearly returns.
• Mature's yearly returns.
• Which is the better investment of the two? Give a brief explanation.