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6 Loreto Inc. has the following financial ratios: asset turnover = 1.80; net profit margin (i.e., net income/sales) = 6%; payout ratio = 20%; equity/assets=0.50.
6 Loreto Inc. has the following financial ratios: asset turnover = 1.80; net profit margin (i.e., net income/sales) = 6%; payout ratio = 20%; equity/assets=0.50. 10 points 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.) Answer is complete but not entirely correct. a. b. Sustainable growth rate Internal growth rate 17.29% 8.65 %
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