A company has a Return on Assets (ROA) of 8.2% and a dividend payout ratio of 30%. Calculate the internal growth rate (round to two decimal places).
A company has a Return on Assets (ROA) of 8.2% and a dividend payout ratio of 30%. Calculate the internal growth rate (round to two decimal places).
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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Transcribed Image Text:A company has a Return on Assets
(ROA) of 8.2% and a dividend payout
ratio of 30%.
Calculate the internal growth rate
(round to two decimal places).
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