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    Internal Growth Rate

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    Joes Cookies Company has total assets of $1,200, total equity of $900 and ROA of 15% and a dividend payout ratio of 40%. What is the internal growth rath of Joes Cookie Company?

    A-6.0%
    B-7.8%
    C-9.9%
    D-11.2%
    E-20.0%

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    https://brainmass.com/business/modified-internal-rate-of-return/internal-growth-rate-154166

    Solution Preview

    Hi there,

    Here is your answer:

    The internal growth rate is derived by taking a company's retained earnings and dividing by total ...

    $2.19

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