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Question 6: Time: 15 minutes Total: 10 marks (a) Calculate the sustainable growth rate given the following information: equity $400,000; total assets $500,000; net income

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Question 6: Time: 15 minutes Total: 10 marks (a) Calculate the sustainable growth rate given the following information: equity $400,000; total assets $500,000; net income $150,000; dividends paid $45,000? (B) Would the internal growth rate be higher or lower and by how much? Show calculations in detail

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