Its return on equity is 20 its plowback ratio is 40 what is


Bio-Plasma Corp. is growing at 30% per year. It is all-equity-financed and has total assets of $1 million. Its return on equity is 20%. Its plowback ratio is 40%. a. What is the internal growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Internal growth rate % b. What is the firm’s need for external financing this year? (Enter your answer in dollars not in millions.) External financing need $ c. By how much would the firm increase its internal growth rate if it reduced its payout rate to zero? (Do not round intermediate calculations. Enter your answer as a percent rounded to the nearest whole number.) Internal growth rate % d. What is the firm's revised need for external financing this year? (Enter your answer in dollars not in millions.) External financing need.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Its return on equity is 20 its plowback ratio is 40 what is
Reference No:- TGS02813743

Expected delivery within 24 Hours