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

  Compute the market value of the bonds

Gillian Stationery Corporation needs to raise $600000 to improve its manufacturing plant. It has decided to issue a $1000 par value bond with an annual coupon rate of 8.0 percent with interest paid semi annually and a 10-year maturity. Investors requ..

  What is the inventory period

Garnishes, Inc. has sales for the year of $46,300 and cost of goods sold of $21,700. The firm carries an average inventory of $4,800 and has an average accounts payable balance of $4,400. What is the inventory period?

  What are the components of gross national product gnp how

what are the components of gross national product gnp? how does it understate aggregate production in third world

  Assuming the same annual interest rate

Under which of the following discounting methods will the present value of an investment be the highest, assuming the same annual interest rate?

  What is the current intrinsic value

Your research has determined the following: Company (Co.) A current dvd is 1.36, Beta = 1.7 and P/E is 23. Cash flow to equity per share is 4.72. Current risk free rate is 2.5% and the expected market return is 10%. Co. A ROE is 16% and has an EPS of..

  Describe ?carefully what happens if the investor exercises

Explain ?carefully what happens if the investor exercises the option after two months. ?Suppose that the futures price at the time of exercise is 362 and the most recent ?settlement price is 360.

  Die machines to produce equipment for other firms

Tool Makers, Inc. uses tool and die machines to produce equipment for other firms. The initial cost of one customized tool and die machine is $850,000. This machine costs $10,000 a year to operate. Each machine has a life of 3 years before it is repl..

  Comprehensive financial analysis of a public corporation

Would you invest your financial capital in the selected firm as a shareholder and would you invest your human and intellectual capital in the firm as an employee?

  Identify appropriate industry specific ratios

Discuss the disadvantages of ratio analysis. You must use questions 1 to 3 and examples from your workplace to substantiate your discussion

  Bond issue outstanding with an annual coupon rate

BSW Corporation has a bond issue outstanding with an annual coupon rate of 7 percent paid quarterly and four years remaining until maturity. The par value of the bond is $1,000. Determine the fair present value of the bond if market conditions justif..

  Explain residual distribution policy

If net income next year is $1.3 million and Puckett follows a residual distribution policy with all distributions as dividends, what will be its dividend payout ratio?

  Should investors care about a multinational firm

Should investors care about a multinational firm's accounting exposure - Accounting exposure is any exposure of a multinational firm's consolidated financial statements to exchange rate movements.

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