Internal growth rate and sustainable growth rate


Problem:

If Hinder, Inc., has a 15 percent ROA and a 25 percent payout ratio, its internal growth rate is......percent

Storico Cleaning, Inc., had additions to retained earnings for the year just ended of $510,000. The firm paid out $130,000 in cash dividends, and it has ending total equity of $6.8 million. If Storico currently has 650,000 shares of common stock outstanding, the earnings per share are $ .... ; dividends per share are $ ... ; and book value per share is $ ..... . If the stock currently sells for $36 per share, the market-to-book ratio is .... times, and the price-earnings ratio is ..... times. If total sales were $23,000,000 million, the price-sales ratio is

If the Crash Davis Driving School has a 16 percent ROE and a 23 percent payout ratio, its sustainable growth rate is ......percent.

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Finance Basics: Internal growth rate and sustainable growth rate
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