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View Full Version : How to find the internal growth rate?


syakirah
Mar 20, 2012, 12:03 PM
11% -return on asset and 30%dividend payout ratio what is the internal growth ratio?

ArcSine
Mar 22, 2012, 04:03 AM
The internal growth rate is the product of ROA and the earnings retention (or "plowback") ratio.

How do you determine the retention ratio when given the payout ratio?

You can take it from here.