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1 June, 07:56

the company maintains a 40% dividend payout ratio. The net income is $12,493. The total on the balance sheet is $106,900. What is the internal growth rate?

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  1. 1 June, 11:53
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    Internal growth rate is calculated by dividing retained earnings by total assets.

    Retained earnings is calculated by subtracting dividends from net income

    So: Retained earnings would be 12,493 - (12,493 X. 4)

    Then to find internal growth rate take your retained earning from above and divide by total assets (the total on the balance sheet : 106,900).
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Home » Business » the company maintains a 40% dividend payout ratio. The net income is $12,493. The total on the balance sheet is $106,900. What is the internal growth rate?
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