Loreto Inc. has the following financial ratios: asset turnover = 1.40; net profit margin (il.e., net income/sales) = 5%: payout ratio = 25%; equity/assets = 0.60. a. What is Loreto's sustainable growth rate? b. What is its internal growth rate? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) a. Sustainable growth rate b. Internal growth rate
Loreto Inc. has the following financial ratios: asset turnover = 1.40; net profit margin (il.e., net income/sales) = 5%: payout ratio = 25%; equity/assets = 0.60. a. What is Loreto's sustainable growth rate? b. What is its internal growth rate? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) a. Sustainable growth rate b. Internal growth rate
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Sustainable growth rate is NOT 9.59 or 8.75%
Internal growth rate is NOT 5.75 or 5.25%
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