Please do your answers on an Excel spreadsheet, using one tab per question. The alternative is to use pen and paper and submit these as a PDF (but this is not ideal.)

2. SkippyLaRue Ltd had total assets of $3,500,000 and equity of $1,290,000 at the beginning of the year. At the end of the year, the company had total assets of $3,614,000. During the year, the company sold no new equity. Net income for the year was $200,000 At the end of the year, SkippyLaRue Ltd paid total dividends of $86,000.

Required

1. Please calculate SkippyLaRues growth rate using start-of-year equity. (2 marks)
2. Please show how you get the same result if you base your calculation on the end-of-year equity figure (3 marks)