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

Question

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] · Answer 1 · 2022-02-06T15:18:34+03:00

<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>