Bo-plasma corp is growing at 34 per year it is all-equity


Bio-Plasma Corp. is growing at 34% per year. It is all-equity financed and has total assets of $3 million. Its return on equity is 20%. Its plowback is 42%

a. What is its internal growth rate?

b. What is the firm's need for external financing this year?

c. By how much would the firm increase its internal growth rate if it reduced its payout rate to zero?

d. What is the firm's revised need for external financing this year?

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Finance Basics: Bo-plasma corp is growing at 34 per year it is all-equity
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