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What is the internal growth rate using beginning of period assets? Gilmore, Inc., had equity of $145,000 at the beginning of the year. At the
What is the internal growth rate using beginning of period assets?
Gilmore, Inc., had equity of $145,000 at the beginning of the year. At the end of the year, the company had total assets of $210,000. During the year, the company sold no new equity. Net income for the year was $27,000 and dividends were $5,800. a. Calculate the internal growth rate for the company. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the internal growth rate using ROA b for beginning of period total assets. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Calculate the internal growth rate using ROA X b for end of period total assets. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. 11.22% b. c. Internal growth rate Internal growth rate using beginning of period assets Internal growth rate using end of period assets 10.00 %Step by Step Solution
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