Best Buy reported the following numbers (in millions) for the years ending February 2011 and 2012. What are the internal and sustainable growth rates? What are the internal and sustainable growth rates using ROE × b and (ROA × 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?

___________________2011 ____________2012

Net income ................................. $ 1,277

Dividends ....................................... 237

Total assets ........... $18,302 .............. 17,849

Total equity ............ 6,302 ................ 6,602