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2 Loreto Inc. has the following financial ratios: asset turnover = 2.40; net profit margin (i.e., net income/sales) = 5%, payout ratio = 30%, equity/assets

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Loreto Inc. has the following financial ratios: asset turnover = 2.40; net profit margin (i.e., net income/sales) = 5%, payout ratio = 30%, equity/assets = 0.40. 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.) x Answer is complete but not entirely correct. a. Sustainable growth rate 21.00 X % b. Internal growth rate 8.40 X %

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