# Based on the results in Problem 27, show that the internal and sustainable growth rates can be

## Question:

Based on the results in Problem 27, show that the internal and sustainable growth rates can be calculated as shown in Equations 3.25 and 3.26.

**Problem 27**

EFN We define the following variables as:

**Equation 3.25**

**Equation 3.26**

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**Related Book For**

## Corporate Finance

**ISBN:** 9781265533199

13th International Edition

**Authors:** Stephen Ross, Randolph Westerfield, Jeffrey Jaffe