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What is the internal growth rate for a firm with an ROE of 20%, a dividend payout ratio of 40%, and an equity-to-debt ratio of

What is the internal growth rate for a firm with an ROE of 20%, a dividend payout ratio of 40%, and an equity-to-debt ratio of 60%?

A. 4.50%

B. 5.39% C. 8.00% D. 12.00%

The answer is A, but how do you get 4.5%?

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