The Veggie Hut has net income of $26,400,total equity of $102,700,and total assets of $189,500.The dividend payout ratio is 0.30.What is the internal growth rate?
A)7.99 percent
B)8.57 percent
C)10.81 percent
D)16.87 percent
E)21.94 percent

Question

Quizplus · Accepted Answer

Internal growth rate = [($26,400/$189,500) × (1 - 0.30)]/{1 - [($26,400/$189,500) × (1 - 0.30)]} = 10.81 percent

The Veggie Hut Has Net Income of $26,400,total Equity of $102,700,and