Ivanhoe Company has net income of $1,015,400, assets of $14,475,200, and retains 79 percent of its...
Ivanhoe Company has net income of $1,015,400, assets of
$14,475,200, and retains 79 percent of its income every year. What
is the company’s internal growth rate? (Round answer to
1 decimal place, e.g. 15.5%.)
| Internal growth rate | enter the internal growth rate in percentages rounded to 1 decimal place % |
Homework Answers
The company's internal growth rate is computed as shown below:
= retention rate x Net income / Assets
= 0.79 x $ 1,015,400 / $ 14,475,200
= 5.5% Approximately
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