What is the internal growth rate of metronic under

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Metronic has $159M in equity and $74M in debt and forecasts $25M in net income for the year. It currently pays dividends equal to 36% of its net income. You are analyzing a potential change in payout policy -a decrease in dividends to 29% of net income.

1. What is the internal growth rate of Metronic under the current payout policy?

2. What is the sustainable growth rate of Metronic under the current payout policy?

3. What is the internal growth rate of Metronic under the considered payout policy?

4. What is the sustainable growth rate of Metronic under the considered payout policy?

Reference no: EM132554657

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