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all the info is given, this is an example of how to find it there is just different number in the example. You can use
all the info is given, this is an example of how to find it there is just different number in the example. You can use the example to figure out the question.
Information for a company is provided in the table below. Net Income Beginning Total Assets Beginning Stockholders' Equity Payout Ratio $49,800 $404,100 $249,200 0% Calculate the following for the company. a. Internal growth rate b. Sustainable growth rate c. Sustainable growth rate if it pays out 45% of its net income as a dividend a. Internal growth rate The internal growth rate is %. (Round to one decimal place.) bi Information for a company is provided in the table below. S Net Income Beginning Total Assets Beginning Stockholders' Equity Payout Ratio $49,600 $407,500 $250,500 0% f Calculate the following for the company. a. Internal growth rate ra b. Sustainable growth rate ra c. Sustainable growth rate if it pays out 43% of its net income as a dividend . a. Internal growth rate te To determine the internal growth rate, use the following formula. Net Income Internal Growth Rate = x(1 - Payout Ratio) Beginning Assets Therefore, $49,600 Internal Growth Rate = X(1 - 0) = 0.122 $407,500 The internal growth rate is 12.2%. b. Sustainable growth rate To determine the sustainable growth rate, use the following formula. Net Income Sustainable Growth Rate = x(1 - Payout Ratio) Beginning Equity c. Sustainable growth rate if it pays out 43% of its net income as a dividend le The sustainable growth rate is: $49,600 Sustainable Growth Rate = X(1 -0.43) = 0.113. $250,500 Step by Step Solution
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