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Acme Explosives has traditionally not distributed any cash to shareholders. The company has $100 million in net income, total assets of $1,100 million, and total

Acme Explosives has traditionally not distributed any cash to shareholders.

The company has $100 million in net income, total assets of $1,100

million, and total equity of $500 million.

What is the internal growth rate and sustainable growth rate for the firm

currently? What is the internal growth rate and sustainable growth rate if

the company commits to distributing 25% of earnings to shareholders

each year?

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