Go Go Industries is growing at 25% per year. It is all-equity-financed and has total assets of $1 million. Its return on equity is 10%. Its plowback ratio is 25%.

a.	What is the internal growth rate? (Enter your answer as a percent rounded to 2 decimal places.)

Internal growth rate

%

b.	What is the firms need for external financing this year? (Enter your answer in dollars not in millions. Do not round intermediate calculations.)

External financing

$

c.	By how much would the firm increase its internal growth rate if it reduced its payout ratio to zero? (Enter your answer as a whole percent.)

Internal growth rate

%

d.	Calculate the revised required external financing. (Enter your answer in dollars not in millions. Do not round intermediate calculations.)

External financing

$