The internal growth rate

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Reference no: EM13848369

IMAX Co. has the following items on its balance sheet.

Assets:

Cash 51,300

PPE 353,900

Liabilities and equity:

Debt 104,500

Equity 300,700

Its net income this year is $19,500 and it pays dividends of $5,400. If it grows at its internal growth rate, what will its debt/equity ratio be next year?

The internal growth rate is __ %

Reference no: EM13848369

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