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  • May 15, 2015, 11:45 AM
    macmahonj
    Calculate Internal Growth Rate
    I have been trying but cannot get the correct answer:
    Bio-Plasma Corp. is growing at 26% per year. It is all-equity-financed and has total assets of $2.4 million. Its return on equity is 18%. Its plowback ratio is 42%.

    I have come up with 10.44 and 13.32 and both are wrong. Could someone give me the correct formula using these numbers?

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