1. Alpha Computer has sales of $618,900, a profit margin of 13.2 percent, a total asset turnover rate of 1.54, and an equity multiplier of 1.06. What is the return on equity? Show your calculations!

1. 18.91 percent B. 12.67 percent

C. 18.28 percent D. 21.55 percent

2. Good Foods has net income of $82,490, total equity of $518,700, and total assets of $1,089,500. The dividend payout ratio is .30. What is the internal growth rate? Show your calculations!

1. 2.32 percent
2. 3.57 percent C. 5.60 percent D. 2.87 percent