Internal Growth Rate: Meredith Ltd Has a Return on Equity

question 3

Multiple Choice

Internal growth rate: Meredith Ltd has a return on equity of 21.5 per cent, an equity ratio of 55 per cent, and a dividend payout ratio of 70 per cent. What is the company's internal growth rate?

• A) 8.3%
• B) 3.6%
• C) 6.4%
• D) 4.8%

---

Definitions:

TQM

Total Quality Management; a management approach focused on improving the quality of an organization's outputs, including goods and services, through continual feedback and refinement.

Incentive Pay Systems

Compensation methods designed to motivate employees by tying a portion of their earnings to specific performance metrics.

TQM

Total Quality Management; a business management strategy aimed at embedding awareness of quality in all organizational processes.

Survey Feedback

A method of organizational development involving the collection of employee opinions and attitudes, followed by sharing the results with them to initiate change.