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    syakirah's Avatar
    syakirah Posts: 1, Reputation: 1
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    #1

    Mar 20, 2012, 12:03 PM
    How to find the internal growth rate?
    11% -return on asset and 30%dividend payout ratio what is the internal growth ratio?
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    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.

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