Need help finding the Dividend Payout and Growth Ratios for Target (TGT)

Internal growth rate = (ROA RR) / [1-(ROA RR)]

where RR = Retention ratio = (Addition to retained earnings)/Net income

-The internal growth rate measures the amount of growth a firm can sustain if it uses only internal financing (retained earnings) to increase assets

Sustainable growth rate = (ROE RR) / [1-(ROE RR)]

-If the firm uses retained earnings to support asset growth, the firm's capital structure will change over time, i.e., the share of equity will increase relative to debt

-To maintain the same capital structure managers must use both debt and equity financing to support asset growth

-The sustainable growth rate measures the amount of growth a firm can achieve using internal equity and maintaining a constant debt ratio

1. Calculate Targets internal growth rate for the last fiscal year:

= (ROA RR) / [1-(ROA RR)]

=

2. Calculate Targets sustainable growth rate for the last fiscal year:

= (ROE RR) / [1-(ROE RR)]

=