All else constant, which one of the following will increase the internal growth rate?

Question

Quizplus · Accepted Answer

The internal growth rate can be calculated as (ROA x b) / (1 - ROA x b) where ROA is the return on assets and b is the plowback ratio. Therefore, an increase in the plowback ratio (C) will increase the internal growth rate, all else constant. The other options will either have no effect or will decrease the internal growth rate.

All Else Constant, Which One of the Following Will Increase