Fried Foods has sales of $238,900,total assets of $217,000,total equity of $121,300,net income of $18,700,and dividends paid of $7,000.What is the internal growth rate?

Name: Fried Foods has sales of $238,900,total assets of $217,000,total equity of $121,300,net income of $18,700,and dividends paid of $7,000.What is the internal growth rate?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Internal growth rate = {($18,700/$217,000) × [($18,700 - $7,000)/$18,700]}/{1 - {($18,700/$217,000) × [($18,700 - $7,000)/$18,700]}}/ = 5.70 percent

Fried Foods Has Sales of $238,900,total Assets of $217,000,total Equity