Best Buy reported the following numbers (in millions) for the years ending February 2005 and 2006. What
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Best Buy reported the following numbers (in millions) for the years ending February 2005 and 2006. What are the internal and sustainable growth rates? What are the internal and sustainable growth rates using ROE X b (ROA X b) and the end of period equity (assets)? What are the growth rates if you use the beginning of period equity in this equation? Why aren't the growth rates the same? What is your best estimate of the internal and sustainable growth rates?
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Using the beginning of period total assets the ROA is ROA Begin 1140 10294 ROA Begin 1107 or 1107 Us...View the full answer
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Related Book For
Essentials Of Corporate Finance
ISBN: 9780073405131
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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