A firm has an ROE of 27.5% and an ROA of 10%. What is the internal growth rate if the firm has a 55% dividend payout ratio?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
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A firm has an ROE of 27.5% and an ROA of 10%. What
is the internal growth rate if the firm has a 55%
dividend payout ratio?
Transcribed Image Text:A firm has an ROE of 27.5% and an ROA of 10%. What is the internal growth rate if the firm has a 55% dividend payout ratio?
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