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Last year, Marly Brown, Inc., reported an ROE of 22 percent. The firms debt-to-equity was 1.5 times, sales were $21.3 million, the capital intensity was

Last year, Marly Brown, Inc., reported an ROE of 22 percent. The firms debt-to-equity was 1.5 times, sales were $21.3 million, the capital intensity was 1.25 times, and dividends paid to common stockholders were $1,130,000. The firm has no preferred stock outstanding. This year, Marly Brown plans to decrease its debt-to-equity ratio to 1.3 times. The change will not affect sales, total assets, or dividends paid, however, it will reduce the firms profit margin to 10.50 percent.

Calculate the internal growth rate for last year and this year and change in these numbers.(Do not round intermediate calculations and round your final answers to 2 decimal places. Input all amounts as positive values.)

Internal Growth Rate
Last year %
This year %
Change % (Click to select)increasedecrease

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