Determine what the companys internal growth rate is

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Problem 1: The Plan-A-Lot Corporation had a net income of $275,000 and sales of $1,500,000. Its debt ratio is 40% and its total assets are worth 2,250,000. If the directors expect to continue paying dividends amounting to 40% of earnings, Determine what the company's internal growth rate (IGR) is

Option 1: 0%.

Option 2: 7.33%.

Option 3: 12.22%.

Option 4: None of these.

Reference no: EM132476838

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