The firm has a 9 percent return on assets and a 75 percent dividend payout ratio....

Question

Question

Answer 1

Answer #1

Internal growth rate=(1-dividend payout ratio)*Return on Assets

=(1-75%)*9%

Internal growth rate=2.3%

Answer 2

Similar Homework Help Questions

A firm has a return on equity of 16 percent, a return on assets of 11...

A firm has a return on equity of 16 percent, a return on assets of 11 percent, and a 40 percent dividend payout ratio. What is the sustainable growth rate! O A 7.12 percent OB. 5.72 percent OC 10.62 percent OD.6.84 percent OE. 9.58 percent
The firm has net income of $3450 and total assets of $13,800. The payout ratio is...

The firm has net income of $3450 and total assets of $13,800. The payout ratio is 30 percent. What is thoe internal growth rate? a. 14.5% b. 17.896 21.3% 29,4% e. 33.3% C.
An analyst has determined that a firm has A payout ratio of 75% A return on...

An analyst has determined that a firm has A payout ratio of 75% A return on equity (ROE) of 18% An earnings per share (EPS) of $5.35 • Sales per share of $342 Expected earnings/ dividends/sales growth of 4.5% Shareholders required retum of 15% The firm's justified price-to-sales ratio (P/S) multiple based on the above fundamentals is closest to: Select one O a 0.471 O b.0.116 c. 0.302 O d. 0.231

A firm wants a sustainable growth rate of 2.88 percent while maintaining a dividend payout ratio...

A firm wants a sustainable growth rate of 2.88 percent while maintaining a dividend payout ratio of 22 percent and a profit margin of 6 percent. The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth? Multiple Choice | o .80 times o 78 times o 60 times o 17 times o 20 times
A firm wants a sustainable growth rate of 3.08 percent while maintaining a dividend payout ratio...

A firm wants a sustainable growth rate of 3.08 percent while maintaining a dividend payout ratio of 26 percent and a profit margin of 5 percent. The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth? ο ο 74 times ο ο ο
a firm wishes to maintain an internal growth rate of 6.75 percent and a dividend payout...

a firm wishes to maintain an internal growth rate of 6.75 percent and a dividend payout ratio of 31 percent. the current profit margin is 5.3 percent and the firm uses no external financing sources what must total asset turnover be

A firm wants a sustainable growth rate of 2.78 percent while maintaining a dividend payout ratio...

A firm wants a sustainable growth rate of 2.78 percent while maintaining a dividend payout ratio of 20 percent and a profit margin of 4 percent. The firm has a capital intensity ratio of 2. What is the debt–equity ratio that is required to achieve the firm's desired rate of growth? Multiple Choice .80 times .69 times .85 times .31 times .16 times
The corporation's return on equity of 1 1 19% and a dividend payout ratio of 20...

The corporation's return on equity of 1 1 19% and a dividend payout ratio of 20 percent sustainable rate of growth? Oa, 11.2% Ob, 9.6% Oc. 10.9% 0 d. 9.3% what is the 9.8% e.
Corporation has a dividend payout ratio of 25 percent and a sustainable growth rate of 12...

Corporation has a dividend payout ratio of 25 percent and a sustainable growth rate of 12 percent. What is the company’s return on equity (ROE)

2.8 Mia, Inc. has a 19 percent ROA and a 20 percent payout ratio. a. (5...

2.8 Mia, Inc. has a 19 percent ROA and a 20 percent payout ratio. a. (5 points) What is its internal growth rate? b. (5 points) What is the sustainable growth rate of Phil, Inc. if it has an ROE of 23%? 2.9 Brian, Inc. has total assets of $8,000,000 and a total asset turnover of 2.8 times. If return on assets is 12%, what is the profit margin for Brian, Inc.? 2.10 For the most recent year, Shirlee, Inc....