Best Buy reported the following numbers (in millions) for the years ending February 1, 2014, and January
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Best Buy reported the following numbers (in millions) for the years ending February 1, 2014, and January 31, 2015. What are the internal and sustainable growth rates? What are the internal and sustainable growth rates using ROE × b and (ROA × b) and the end of period equity (assets)? What are the growth rates if you use the beginning of period equity in this equation? Why aren't the growth rates the same? What is your best estimate of the internal and sustainable growth rates?
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2014 Net income Dividends Total assets Total equity 2015 $ 1,233 15,256 251 $14,013 3,986 4,995
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Internal growth rate is the maximum growth rate that can be achieved with no external financinc of any type is given as follows Where ROA is return on ...View the full answer
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Related Book For
Essentials of Corporate Finance
ISBN: 978-1259277214
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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