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i need to know answer to #23 please. thank you 22. Sustainable Growth Rate [' LO3] Deprey, Inc., had equity of $153,000 at the beginning
i need to know answer to #23 please. thank you
22. Sustainable Growth Rate [' LO3] Deprey, Inc., had equity of $153,000 at the beginning of the year. At the end of the year, the company had total assets of $215,000. During the year, the company sold no new equity. Net income for the year was $29,000 and dividends were $6,400. What is the sustainable growth rate for the company? What is the sustainable growth rate if you use the formula ROEb and beginning of period equity? What is the sustainable growth rate if you use end of period equity in this formula? Is this number too high or too low? Why? 23. Internal Growth Rates [ LO3] Calculate the internal growth rate for the company in Problem 22. Now calculate the internal growth rate using ROAb for both beginning of period and end of period total assets. What do you observeStep by Step Solution
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