Internal Growth Rate Last year Rain Repel Corporation had an ROA of 5% and a dividend payout ratio of 90%. What is the internal growth rate?
A) 4.75%
B) 0.50%
C) 50.00%
D) 52.63%

Name: Internal Growth Rate Last year Rain Repel Corporation had an ROA of 5% and a dividend payout ratio of 90%. What is the internal growth rate? A) 4.75% B) 0.50% C) 50.00% D) 52.63%
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Question

Quizplus · Accepted Answer

The internal growth rate is calculated using the formula: ROA * (1 - Dividend Payout Ratio). Here, it is 5% * (1 - 0.90) = 0.5%.

Internal Growth Rate Last Year Rain Repel Corporation Had an ROA