P4-12 Internal Growth [LO3]
| If the Baseball Shoppe has an 10 percent ROA and a 16 percent payout ratio, what is its internal growth rate? (Do not round your intermediate calculations.) |
rev: 09_17_2012
Multiple Choice
1.63%
7.89%
9.17%
10.64%
10.45%
Ans 9.17%
| Retention Ratio = | ( 1 - Dividend Payout Ratio) |
| 1 - 16% | |
| 84% | |
| Internal Growth Rate = | (Retention Ratio *Return on Assets) / ( 1 -Retention Ratio *Return on Assets) |
| (84% * 10%) / ( 1 - 84% * 10%) | |
| 9.17% |
P4-12 Internal Growth [LO3] If the Baseball Shoppe has an 10 percent ROA and a 16...
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Question 1:
Question 2:
Williams, Inc., has an ROA of 6 percent and a payout ratio of 17
percent.
What is its internal growth rate? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
Internal growth rate: _______ %
Question 3:
SDJ, Inc., has net working capital of $2,160, current
liabilities of $5,510, and inventory of $1,240.
What is the current ratio? (Do not round
intermediate calculations and round...