Calculate the internal growth rate

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Question-

a) Calculate the internal growth rate given the following information: total assets $450,000; net income $100,000; dividends paid $35,000. Show calculations in detail.

b) Ali collects old model cars. One particular model increases in value at a rate of 6.5% per year. Today, the model is worth $1,670. How much additional money can Ali make if he waits 4 years to sell the model rather than selling it 2 years from now? Show calculations in detail.

Reference no: EM132816912

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