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Check my work Problem 18-16 Feasible Growth Rates (L03) Eagle Sports Supply has the following financial statements. Assume th
Check my work Total $ 3,450 $3,750 Total $3,450 $3,750 a. What is the internal growth rate of Eagle Sports if the dividend pa
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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

I HAVE SOLVED USING COMPREHENSIVE FORMULA AS NOTHING IS MENTIONED

THERE ARE ALSO SHORT CUT FORMULAS FOR BOTH.

IN THAT CASE, ANSWERS WILL BE :

INTERNAL GROWTH RATE = ROA X b = 16% X 30% = 4.80%

SUSTAINABLE GROWTH RATE = ROE X B = 24% X 30% = 7.20%- 2x Σ AutoSum : A Insert Delete Format Fill 2 Clear Sort & Filter Editing Find & Select Cells AR AS NPV, IRR, PBP,OCFINDEX -

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