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Loreto Inc. has the following financial ratios: asset turnover = 2.20: net profit margin (.e., net income/sales) = 5%: payout ratio = 40%; equity/assets=0.50. a.
Loreto Inc. has the following financial ratios: asset turnover = 2.20: net profit margin (.e., net income/sales) = 5%: payout ratio = 40%; equity/assets=0.50. a. What is Loreto's sustainable growth rate? b. What is its intemal 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. Sustainable growth rate Internal growth rate 18.82 X % 8.60 % b
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