Solutions to Questions and Problems

The growth rate that could be achieved with no outside financing at all is the internal growth rate. To find the internal growth rate we first need the return on assets, which is: ROA = Net income / Total assets. ROA = $8,000 / ($49,000 + 33,000) ROA = .0976 or 9.76%. So, the internal growth rate is: Internal growth rate = [(ROA)(b)] / [1 ... ................
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