Chadron Dog House has net income of $3,450 and total equity of $8,600. The debt-equity ratio is .60 and the payout ratio is 40 percent. What is the internal growth rate?

• A. 29.14 percent
• B. 17.71 percent
• C. 14.47 percent
• D. 21.29 percent
• E. 25.09 percent

Chadron Industrial Products wishes to maintain a growth rate of 5 percent a year, a debt-equity ratio of .45, and a dividend payout ratio of 35 percent. The ratio of total assets to sales is constant at 1.25. What profit margin must the firm achieve?

• A. 6.97 percent
• B. 5.29 percent
• C. 8.19 percent
• D. 4.68 percent
• E. 6.33 percent

Chadron Companies has sales of $10,205, net income of $1,060, total assets of $8,950, and total debt of $4,760. Assets and costs are proportional to sales. Debt and equity are not. A dividend of $371 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $10,584. What is the amount of the external financing need?

• A. $28
• B. $716
• C. $1,574
• D. $1,333
• E. $382