Best Buy reported the following numbers (in millions) for the years ending February 2007 and 2008. 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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2008 2007 $ 1,407 Net income Dividends 204 Total assets $13,570 12,758 4,484 Total equity 6,201