Ask Question
29 October, 20:01

Undertaker enterprises earns $0.17 in profit on every $1 of sales and has $0.67 in assets for every $1 of sales. the firm pays out 20 percent of its profits to its shareholders. what is the internal growth rate?

+5
Answers (1)
  1. 29 October, 23:19
    0
    The internal growth rate is retained earning ($0.17n) divided by Total Assets ($.067n). Note that their will be a 20% cut from the equation $.17n so make sure to take out 20% from that value before dividing by Total Assets. The final equations are. 017n x. 017n (.2) = Earnings to Stakeholders or E. 017n - E = Retained Earnings or R R/.067n = Internal Growth Rate
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Undertaker enterprises earns $0.17 in profit on every $1 of sales and has $0.67 in assets for every $1 of sales. the firm pays out 20 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers