As we just said, Crochet Supplies has a total asset turnover rate of 1.4, an equity multiplier of 1.3, a profit margin of 7 percent, a retention ratio (b) of 0.6, and total assets of $100,000. Using the same data for Crochet Supplies plus Net Income is $9,800, what is Crochet's Internal Growth Rate? Hint: First find Crochet's ROA. Internal Growth Rate Internal growth rate is a formula for calculating the maximum growth rate a firm can achieve without external financing of any kind. ROA X b Internal Growth Rate (IGR) = 1 - (ROA X b) I ROA Return on Assets I b = Retention ratio =1 - dividend payout ratio and Return on Equity = Net Income/Total Shareholder's Equity