owth Rate Leash N reported a profit margin of 8.5%, total as and dividends paid to common stockholders of $250,000. The firm has no pre intermediate steps.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Internal Growth Rate Leash N Collar reported a profit margin of 8.5%, total asset turnover ratio of 2 times, debt-to-equity ratio of 0.8 times, net income of $450,000,
and dividends paid to common stockholders of $250,000. The firm has no preferred stock outstanding. What is Leash N Collar's internal growth rate? (Do not round
intermediate steps.)
Multiple Choice
9.2896%
10.7647%
8.1731%
4.8824%
Transcribed Image Text:Internal Growth Rate Leash N Collar reported a profit margin of 8.5%, total asset turnover ratio of 2 times, debt-to-equity ratio of 0.8 times, net income of $450,000, and dividends paid to common stockholders of $250,000. The firm has no preferred stock outstanding. What is Leash N Collar's internal growth rate? (Do not round intermediate steps.) Multiple Choice 9.2896% 10.7647% 8.1731% 4.8824%
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