What is the internal growth rate

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Bio-Plasma Corp. is growing at 30% per year. It is all-equity-financed and has total assets of $1 million. Its return on equity is 20%. Its plowback ratio is 40%. a. What is the internal growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Internal growth rate % b. What is the firm’s need for external financing this year? (Enter your answer in dollars not in millions.) External financing need $ c. By how much would the firm increase its internal growth rate if it reduced its payout rate to zero? (Do not round intermediate calculations. Enter your answer as a percent rounded to the nearest whole number.) Internal growth rate % d. What is the firm's revised need for external financing this year? (Enter your answer in dollars not in millions.) External financing need.

Reference no: EM132019279

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