Internal growth rate

eschottl · #1 Oct 6, 2007, 02:34 PM

How do you calculate internal growth if you are given ROE 20%, Payout ratio 40%, and and equity debt ratio 60%

ake_finance · Oct 7, 2007, 08:34 AM

internal growth = ROE x (1-DPO)
= 20% x (1-0.4)
= 12%



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