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Medtronic firm has $69,000,000 in equity and $60,000,000 in debt and forecast $24,000,000 in net income for the year. It currently pays dividends equal to
Medtronic firm has $69,000,000 in equity and $60,000,000 in debt and forecast $24,000,000 in net income for the year. It currently pays dividends equal to 19% of its net income.
a. What would their internal growth rate be?
b. What would their sustainable growth rate be?
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