Acme Explosives has traditionally not distributed any cash to shareholders. The company has $100 million in net
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Acme Explosives has traditionally not distributed any cash to shareholders. The company has $100 million in net income, total assets of $1,100 million, and total equity of $500 million. What is the internal growth rate and sustainable growth rate for the firm currently? What is the internal growth rate and sustainable growth rate if the company commits to distributing 25% of earnings to shareholders each year?
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0078115660
7th edition
Authors: Bradford Jordan, Thomas Miller
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