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Last year, Marly Brown, Inc., reported an ROE of 24 percent. The firms debt-to-equity was 1.5 times, sales were $21.1 million, the capital intensity was
Last year, Marly Brown, Inc., reported an ROE of 24 percent. The firms debt-to-equity was 1.5 times, sales were $21.1 million, the capital intensity was 1.10 times, and dividends paid to common stockholders were $1,110,000. The firm has no preferred stock outstanding. This year, Marly Brown plans to decrease its debt-to-equity ratio to 1.2 times. The change will not affect sales, total assets, or dividends paid, however, it will reduce the firms profit margin to 10.40 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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