Question: 105. I am need help solving this problem for my corporate finance homework and was hoping someone could help me with it and provide work
Using the information in the following table, calculate this company's: a. Internal growth rate. b. Sustainable growth rate. c. Sustainable growth rate if it pays out 35% of its net income as a dividend. The Tax Cuts and Jobs Act of 2017 temporarily allows 100\% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. a. Internal growth rate. The internal growth rate is \%. (Round to one decimal place.) b. Sustainable growth rate. The sustainable growth rate is \%. (Round to one decimal place) c. Sustainable growth rate if it pays out 35% of its net income as a dividend. The sustainable growh rate, if it pays out 35% of its net income as a dividend, is %. (Round to one decimal place.)
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