Darnell Electric Internal Growth Rate

Darnell Electric Internal Growth Rate - Retention...

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sales 173,000 asssets 160,000 net income 15,000 dividends 3,000 Addition to Retained Earnings 12,000 ROA 0.0938 Retention Ratio 0.8 Internal Growth Rate 0.0811 8.11 Net Income= Dividends+Addition to Retained Earnings  Addition to Retained Earnings= Net Income-Dividends
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Unformatted text preview: Retention Ratio (Plowback Ratio)= Addition to Retained Earnings/Net Income ROA=Net Income/ Total Assets Internal Growth Rate= ROA*Retention Ratio/ 1-ROA* Retention Ratio...
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