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4. If the Company A has an 5.00% ROA and a 22.00% dividend payout ratio, what is its internal growth rate? WA 5. Consider the

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4. If the Company A has an 5.00% ROA and a 22.00% dividend payout ratio, what is its internal growth rate? WA 5. Consider the following information for Company XY: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 9.8% 0.58 0.53 S34,000 $21,760 Calculate the sustainable growth rate. Hint: Remember the Dupont identity and the fact that the TAT ratio is the inverse of the capital intensity ratio

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