Suppose the ﬁrm retains 28% of earnings, while assets and costs maintain a constant percentage of sales. If the ﬁrm is producing at full capacity, what is the internal growth rate?
A) 1.9%
B) 4.8%
C) 10.1%
D) 13.5%
E) 17.3%

Question

Suppose the ﬁrm retains 28% of earnings, while assets and costs maintain a constant percentage of sales. If the ﬁrm is producing at full capacity, what is the internal growth rate?
A) 1.9% 
B) 4.8% 
C) 10.1% 
D) 13.5% 
E) 17.3%

Quizplus · Accepted Answer

The Answer of 
 Suppose the ﬁrm retains 28% of earnings, while assets and costs maintain a constant percentage of sales. If the ﬁrm is producing at full capacity, what is the internal growth rate?
A) 1.9% 
B) 4.8% 
C) 10.1% 
D) 13.5% 
E) 17.3%

Suppose the ﬁRm Retains 28% of Earnings, While Assets and Costs