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
icon
Related questions
Question

give me this question answer

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).
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).
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT