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    Fundamentals of Corporate Finance Study Set 14
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    Exam 18: Financial Modeling and Pro Forma Analysis
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    A Firm Has $50 Million in Equity and $20 Million
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A Firm Has $50 Million in Equity and $20 Million

Question 64

Question 64

Multiple Choice

A firm has $50 million in equity and $20 million of debt, it pays dividends of 30% of net income, and has a net income of $10 million. What is the firm's internal growth rate?


A) 9%
B) 10%
C) 11%
D) 12%

Correct Answer:

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