Question
Better Burgers reported the following numbers (in millions) for the years ending February 2011 and 2012. 2011 2012 Net income $ 1,427 Dividends 206 Total
Better Burgers reported the following numbers (in millions) for the years ending February 2011 and 2012. |
2011 | 2012 | |||||||
Net income | $ | 1,427 | ||||||
Dividends | 206 | |||||||
Total assets | $ | 13,590 | 12,778 | |||||
Total equity | 6,221 | 4,504 | ||||||
Requirement 1: |
What are the internal and sustainable growth rates? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) |
Internal growth rate | % | |
Sustainable growth rate | % | |
Requirement 2: |
What are the internal and sustainable growth rates using ROE b and (ROA b) and the end of period equity (assets)? (Enter rounded answers as directed, but do not use the rounded numbers in intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) |
Internal growth rate | % | |
Sustainable growth rate | % | |
Requirement 3: |
What are the growth rates if you use the beginning of period equity in this equation? (Enter rounded answers as directed, but do not use the rounded numbers in intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) |
Internal growth rate | % | |
Sustainable growth rate | % | |
Please show all work for explanation, thank you
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