Information for a company is provided in the table below: Net Income .................................... $50,000 Beginning Total Assets

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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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Fundamentals of Corporate Finance

ISBN: 978-0133400694

1st canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

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Question Posted: Mar 31, 2017 02:28 PM

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Information for a company is provided in the table below: Net Income .................................... $50,000 Beginning Total Assets

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Fundamentals of Corporate Finance

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