Answered: What is the corporation's internal…

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Accounting

What is the corporation's internal growth rate? 14% 6% 5% 10%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

[26] Choose the correct answer w/ explanation. JFINEX Corporation has an ROE of 20%; EPS of 2.5; Market risk premium of 4%; Dividend payout ratio of 70%; Market Price of 50. What is the corporation's internal growth rate?

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