Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Transcribed Image Text:A firm has $40 million in total equity and $20 million of total liabilities at the beginning of
the year. Its net income is projected to be $10 million. It pays dividends of 20% of net
income. What will be the firm's internal growth rate?
3.33%
с 20.00%
13.33%
15.70%
14.10%
222
с
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