Question: 2 Last year, Marly Brown, Inc. reported an ROE 20 percent. The firm's debt to equily was 1.5 times, sales were $20.4 million, the capital

2 Last year, Marly Brown, Inc. reported an ROE 20 percent. The firm's debt to equily was 1.5 times, sales were $20.4 million, the capital intensity was 1.30 times, and dividends paid to common stockholders were $1.040,000. The firm has no preferred stock outstanding. This year, Matty Brown plans to decrease its debt to equity ratio to 12 times. The change will not affect sales, total assets, or dividends pald, however, it will reduce the firm's profit margin to 10.05 percent Calculate the internal growth rate for last year and this year and change in these numbers? (Do not round intermediate calculations ond round your final answers to 2 decimal places.) DS 0 Internal Growth fo This year Change 000

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