Question
Deprey, Incorporated, had equity of $190,000 at the beginning of the year. At the end of the year, the company had total assets of $345,000.
Deprey, Incorporated, had equity of $190,000 at the beginning of the year. At the end of the year, the company had total assets of $345,000. During the year, the company sold no new equity. Net income for the year was $40,000 and dividends were $5,600.
a. Calculate the internal growth rate for the company. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. Calculate the internal growth rate using ROA b for beginning of period total assets. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c. Calculate the internal growth rate using ROA b for end of period total assets. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started