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A company has an ROA of 6% and an equity multiplier of 2.0. Net Income for last year was $10.0 Million, of which $4.0 Million
A company has an ROA of 6% and an equity multiplier of 2.0. Net Income for last year was $10.0 Million, of which $4.0 Million was paid out as dividends.
What is the Internal Growth Rate?
a. 4.12%
b. None of the above are correct solutions
c. 5.55%
d. 3.73%
e. 6.00%
What is the Sustainable Growth Rate?
a. None of the above are correct solutions.
b. 5.58%
c. 7.76%
d. 4.92%
e. 8.24%
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