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Gilmore, Inc., had equity of $210,000 at the beginning of the year. At the end of the year, the company had total assets of $365,000.
Gilmore, Inc., had equity of $210,000 at the beginning of the year. At the end of the year, the company had total assets of $365,000. During the year, the company sold no new equity. Net income for the year was $44,000 and dividends were $6,400. 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.) X Answer is complete but not entirely correct. a. Internal growth rate ROA b (using beginning of period assets) ROA b (using end of period assets) 11.33 X % 10.93 X % b. c. 10.30 %
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