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Loreto Inc. has the following financial ratios: asset turnover = 2.20; net profit margin (.e., net income/sales) = 6%; payout ratio = 40%; equity/assets =

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Loreto Inc. has the following financial ratios: asset turnover = 2.20; net profit margin (.e., net income/sales) = 6%; payout ratio = 40%; equity/assets = 0.50. 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.) a. 5.84% Sustainable growth rate Internal growth rate b. %

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