Better Burgers reported the following numbers (in millions) for the years ending February 2021 and 2022. Net income Dividends Total assets Total equity 2021 Internal growth rate Sustainable growth rate $ 13,600 6,231 2022 $ 1,437 207 14,830 7,461 What are the internal and sustainable growth rates? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. % %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Better Burgers reported the following numbers (in millions) for the years ending February 2021 and 2022.
Net income
Dividends
Total assets
Total equity
Internal growth rate
Sustainable growth rate
2021
Internal growth rate
Sustainable growth rate
$ 13,600
6,231
What are the internal and sustainable growth rates?
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
2022
$ 1,437
207
Internal growth rate
Sustainable growth rate
%
%
What are the internal and sustainable growth rates using ROE × b and ROA × b and the end of period equity (assets)?
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
14,830
7,461
%
%
What are the growth rates if you use the beginning of period equity in this equation?
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
%
%
Transcribed Image Text:Better Burgers reported the following numbers (in millions) for the years ending February 2021 and 2022. Net income Dividends Total assets Total equity Internal growth rate Sustainable growth rate 2021 Internal growth rate Sustainable growth rate $ 13,600 6,231 What are the internal and sustainable growth rates? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. 2022 $ 1,437 207 Internal growth rate Sustainable growth rate % % What are the internal and sustainable growth rates using ROE × b and ROA × b and the end of period equity (assets)? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. 14,830 7,461 % % What are the growth rates if you use the beginning of period equity in this equation? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. % %
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