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28 April, 01:23

Fried donuts has sales of $764,900, total assets of $687,300, total equity of $401,300, net income of $68,200, and dividends paid of $27,000. what is the internal growth rate?

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  1. 28 April, 01:28
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    Internal growth rate = Net income / Total Assets

    Net income = $68,200

    Total assets = $687,300

    Internal growth rate

    = $68,200 / $687,300

    = 0.099228 x 100%

    = 9.92 %

    Fried Donuts has an internal growth rate of 9.92%.
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