Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gilmore, Inc., had equity of $180,000 at the beginning of the year. At the end of the year, the company had total assets of $335,000.

Gilmore, Inc., had equity of $180,000 at the beginning of the year. At the end of the year, the company had total assets of $335,000. During the year, the company sold no new equity. Net income for the year was $38,000 and dividends were $5,200.

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

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions