A Firm Has $70 Million in Equity and $30 Million

question 71

Multiple Choice

A firm has $70 million in equity and $30 million of debt,it pays dividends of 30% of net income,and has a net income of $10 million.What is the firm's internal growth rate?

• A)6%
• B)7%
• C)8%
• D)9%
• E)10%