Problem 29-28 Forecast growth rate Bio-Plasma Corp. is growing at 31% per year. It is all-equity-financed and has total assets of $1.1 million. Its return on equity is 21%. Its plowback ratio is 41%. a. What is the internal growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) b. What is the firm's need for external financing this year? (Enter your answer in dollars not in millions.) 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.) d. What is the firm's revised need for external financing this year? (Enter your answer in dollars not in millions.) a. Internal growth rate b. External financing need c. Internal growth rate d. External financing need
Problem 29-28 Forecast growth rate Bio-Plasma Corp. is growing at 31% per year. It is all-equity-financed and has total assets of $1.1 million. Its return on equity is 21%. Its plowback ratio is 41%. a. What is the internal growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) b. What is the firm's need for external financing this year? (Enter your answer in dollars not in millions.) 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.) d. What is the firm's revised need for external financing this year? (Enter your answer in dollars not in millions.) a. Internal growth rate b. External financing need c. Internal growth rate d. External financing need
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 26SP
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