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1. A local small business has sales revenues of $100,000. The company is all-equity financed, and pays out 25% of their earnings as dividends.
1. A local small business has sales revenues of $100,000. The company is all-equity financed, and pays out 25% of their earnings as dividends. If their internal growth rate is 25%, and their profit margin is 2, then what is the value of their assets? 2. A company boasts an ROE of 20%, a dividend payout ratio of 40%, and an impressive market- to-book ratio of 10.0! If the company's D/E ratio of 0.8 is carefully maintained, then what will be their internal growth rate?
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