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Specter firm has $65,000,000 in equity and $55,000,000 in debt and forecast $29,000,000 in net income for the year. It currently pays dividends equal to

Specter firm has $65,000,000 in equity and $55,000,000 in debt and forecast $29,000,000 in net income for the year. It currently pays dividends equal to 26%= 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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