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a) A firm has net income of $6000 and total assets of $30,000. The dividend payout ratio is 40%. What is the internal growth rate?

a) A firm has net income of $6000 and total assets of $30,000. The dividend payout ratio is 40%. What is the internal growth rate? b) A firm has a net income of $2000 pays $400 in dividends. Its total equity is $8000. What is the sustainable growth rate? ROA xb Internal Growth Rate 1 - ROA xb ROE xb Sustainable Growth Rate 1 - ROExb

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