Net income = $150; Total assets = $1,000; Total liabilities = $400; Total asset turnover = 4.0

What is the internal growth rate assuming dividends paid total $100?

Name: Net income = $150; Total assets = $1,000; Total liabilities = $400; Total asset turnover = 4.0 What is the internal growth rate assuming dividends paid total $100?
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Question

Net income = $150; Total assets = $1,000; Total liabilities = $400; Total asset turnover = 4.0

What is the internal growth rate assuming dividends paid total $100?

Quizplus · Accepted Answer

Internal growth rate = (Net income - Dividends) / Total assets * Total asset turnover= ($150 - $100) / $1,000 * 4.0= $50 / $1,000 * 4.0= 0.053 or 5.3%

Net Income = $150; Total Assets = $1,000; Total Liabilities