What Is the Internal Growth Rate for a Firm with an ROE

question 99

Multiple Choice

What is the internal growth rate for a firm with an ROE of 20%,a dividend payout ratio of 40%,and an equity-to-debt ratio of 60%?

• A) 4.50%
• B) 5.39%
• C) 8.00%
• D) 12.00%

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Definitions:

Electronic Commerce

The buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet.

Canada

A North American country consisting of ten provinces and three territories, known for its vast landscapes, multicultural heritage, and bilingual status (English and French).

Shrink Wrap

Packaging made of a plastic film that is wrapped around items and then shrunk by heat to form a tight seal.

Electronic Purchase

The process of buying goods or services over the internet through various digital platforms.