Return on Equity = Net Income/ Equity = ( 10.3 × 25%)/3022080= 85.21%
Growth Rate = Return on Equity × Retention Ratio
Growth Rate = 85.21% × (30/100) = 25.562 %
Expected Profit for the next year = 8.3 × 0.25 = 2.075 million
ROE should be 85.21%. Equity will be 2.075/.8521
2435160.20
Which is 586920 less than 3022080.
-586920 Answer
Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for...
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