What is the internal growth
rate using beginning of period assets?
Beginning of period assets= End of period assets-(Net Income-Dividend)
= 210000-(27000-5800)
=188800
IGR = ROA*b
= (Net Income/Beginning assets)*(Addition to retained earnings/Net Income)
= (27000/188800)*((27000-5800)/27000)
=0.143008*0.785185
=11.23%
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