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A Firm Has $40 Million in Equity and $20 Million

Question 84

Multiple Choice

A firm has $40 million in equity and $20 million of debt, it pays dividends of 20% of net income, and has a net income of $10 million. What is the firm's internal growth rate?


A) 12.2%
B) 13.3%
C) 14.1%
D) 15.2%

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