Jordan Inc. had net income of $15,900 last year, paid out $8,800 in dividends, and wants...

 

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Jordan Inc. had net income of $15,900 last year, paid out $8,800 in dividends, and wants to maintain the same dividend payout ratio in the future. At the end of the year, the company had a book value of debt of $23,000 and a book value of equity of $41,000. Part 1 BAttempt 6/6 for 5 pts. What rate of growth is possible without any additional borrowing (internal growth rate)? 3+ decimals Submit Jordan Inc. had net income of $15,900 last year, paid out $8,800 in dividends, and wants to maintain the same dividend payout ratio in the future. At the end of the year, the company had a book value of debt of $23,000 and a book value of equity of $41,000. Part 1 BAttempt 6/6 for 5 pts. What rate of growth is possible without any additional borrowing (internal growth rate)? 3+ decimals Submit

Answer rating: 100% (QA)

The internal growth rate is the maximum rate at which a company can grow its sales and assets withou... View the full answer