Question: Information for a company is provided in the table below: Net Income .................................... $50,000 Beginning Total Assets ...................... $400,000 Beginning Stockholders' Equity ............ $250,000 Payout

Information for a company is provided in the table below:

Net Income .................................... $50,000

Beginning Total Assets ...................... $400,000

Beginning Stockholders' Equity ............ $250,000

Payout Ratio ........................................ 0%

Calculate the following for the company:

a. Internal growth rate

b. Sustainable growth rate

c. Sustainable growth rate if it pays out 40% of its net income as a dividend.

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