Answer the qeustion

Your firm has $50 million in equity and $25 million in debt and forecasts $8 million in net income for the year. It currently pays dividends equal to 10% of its net income. You are analyzing a potential change in payout policy- an increase in dividends to 15% of net income. How would this change affect your internal and sustainable growth rates? Determine ROA, ROE, old and new retention rate, and both old and new internal and sustainable growth rates