Internal Growth Rate = | (ROA × b)/(1 - ROA × b) |
= | (0.1255×0.6)/(1-0.1255×0.6) |
= | 0.08143 |
= | 8.14% |
ROA= | Net Income/Asset |
= | $15,112/$120,400 |
= | 12.55% |
b = 1 - 40% = 1 - 0.40 = 0.60 | |
20. Calculating Internal Growth, The most recent financial statements for Shinoda Manufacturing Co. are shown here:...
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answer for problem 7
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