Question
Medtronic firm has $63,000,000 in equity and $55,000,000 in debt and forecast $30,000,000 in net income for the year. It currently pays dividends equal to
Medtronic firm has $63,000,000 in equity and $55,000,000 in debt and forecast $30,000,000 in net income for the year. It currently pays dividends equal to 16% of its net income.
a. What would their internal growth rate be? NOTE: Answer in percentage. If your answer is 0.0405, then answer 4.05.
b. What would their sustainable growth rate be? NOTE: Answer in percentage. If your answer is 0.0405, then answer 4.05.
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Advanced Finance
Authors: Michael Fardon
1st Edition
1872962319, 1872962173, 978-1872962313, 978-1872962177
