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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 companys D/E

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 companys D/E ratio of 0.8 is carefully maintained, then what will be their internal growth rate? Solve for IGR using the formula below:

Internal growth rate = plowback ratio x ROE x (equity / assets)

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