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solniwko [45]
3 years ago
11

Undertaker enterprises earns $0.17 in profit on every $1 of sales and has $0.67 in assets for every $1 of sales. the firm pays o

ut 20 percent of its profits to its shareholders. what is the internal growth rate?
Business
1 answer:
Kobotan [32]3 years ago
6 0
<span>The internal growth rate is retained earning( $0.17n) divided by Total Assets($.067n). Note that their will be a 20% cut from the equation $.17n so make sure to take out 20% from that value before dividing by Total Assets. The final equations are .017n x .017n(.2) = Earnings to Stakeholders or E .017n - E = Retained Earnings or R R/.067n = Internal Growth Rate</span>
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