What is the internal growth rate

Assignment Help Financial Management
Reference no: EM13727343

Net income is $2,262, Total Assets $39,150, Total Equity $21,650, and the retention ratio (beta) is 0.70. What is the internal growth rate?

A. 2.91%

B. 4.21%

C. 6.72%

D. 7.87%

E. 10.45%

Reference no: EM13727343

Questions Cloud

The trip is expected to cost a total : You plan to go to Asia to visit friends in three years. The trip is expected to cost a total of $10,000 at that time. Your parents have deposited $5,000 for you in a Certificate of Deposit paying 6% interest annually, maturing three years from now.
Analysis of all of the aspects of an applicant : Selecting the right person for an open position requires an analysis of all of the aspects of an applicant, including his or her past experience (knowledge, skills, and education), his or her application and resume, and the interview responses.
Disadvantages of founding a company with your friends : What are the advantages/disadvantages of founding a company with your friends. How did the founders identify and entice stakeholders to join their board of advisors
Suppose a corporation can change its depreciation method : Suppose a corporation can change its depreciation method so that its tax payments will decrease by $5,000 this year but increase by $5,000 next year
What is the internal growth rate : Net income is $2,262, Total Assets $39,150, Total Equity $21,650, and the retention ratio (beta) is 0.70. What is the internal growth rate?
Develop a marketing strategy for your packaged ice : Develop a marketing strategy for your packaged ice that includes a market penetration strategy, market development strategy, and the value proposition
What is the sustainable growth rate : Frifeldt Farm just paid a dividend of $1,026, has a total equity of $21,650, total assets of $31,450, and a net income of $3,420. What is the sustainable growth rate?
One of the major advantages of a sole proprietorship : Mr. Flint is the president of Martell Company. If he gets a deferred annuity of $4500 per year for 10 years, with the first payment received at the end of the third year (and the next a year from then and so on until all 10 payments are received), wh..
Constructed a balance sheet reflecting this transaction : Scott is buying $5,000 worth of a stock with $4,000 in cash plus a $1,000 margin loan. If you constructed a balance sheet reflecting this transaction, the total assets would be:

Reviews

Write a Review

Financial Management Questions & Answers

  The effective before tax cost of capital

To help fund an addition to your house, you borrow $25,000 from your bank. The conditions of your loan state that the interest rate is 9 percent compounded monthly. The Effective before tax cost of capital?

  What do you think interest rates and inflation

What do you think interest rates and inflation will do in the U.S. over the next 2 years? How will this impact the value of the dollar, Explain?

  Tax operating costs problem

Firm S is considering adding a robotic device to its production line. The device base price is $1,038,000.00, and it would cost another $21,500.00 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates a..

  Describe concept of future value and present value

Describe concept of future value and present value

  What is the cost of capital for adventure outfitter

Adventure Outfitter Corp. can sell common stock for $27 per share and its investors require a 17% return. However, the administrative or flotation costs associated with selling the stock amount to $2.70 per share. What is the cost of capital for Adve..

  What is the NPV of the Wheel Deal expansion

The Wheel Deal Inc., a company that produces scooters and other wheeled non-motorized recreational equipment is considering an expansion of their product line to Europe. What are the annual after-tax cash flows for the Wheel Deal project? what is the..

  Concept of cost of capital mace manufacturing

Concept of cost of capital Mace Manufacturing is in the process of analyzing its investment decision-making procedures. Two projects evaluated by the firm recently involved building new facilities in different regions, North and South.

  Offered an investment plan

You have $7,863 you want to invest for the next 34 years. You are offered an investment plan that will pay you 11.8 percent per year for the next 9 years and 19.2 percent per year for the remaining years. How much will you have at the end of the 34 y..

  Earnings per share are approximately

A stock report contains the following information: P/E 21.4, closing price 28.16, dividend 1.10, net chg .06, and an ask of 28.22 × 300. Which one of the following statements is correct given this information? The stock price has increased by 6 perce..

  Describe the purpose primary financial statements

Describe the purpose of each of the five primary financial statements.

  What is the effective yearly interest rate on the loan

Suppose a bank offers you a car loan for a car worth £12,000 with an Annual Percentage Rate (APR) of 8%. You are required to pay interest every three months for ten years. What is the effective yearly interest rate on the loan?

  Write a check to ]aural

Successive loan deposited in a checking account and no banks keeping any excess reserves -  suppose First Main Street Bank loans out all of its new excess reserves to Kristen, who immediately uses the funds to write a check to ]aural.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd