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Loreto Inc. has the following financial ratios: asset turnover = 1.40; net profit margin (i.e., net income/sales) = 6%, payout ratio = 25%, equity/assets =
Loreto Inc. has the following financial ratios: asset turnover = 1.40; net profit margin (i.e., net income/sales) = 6%, payout ratio = 25%, equity/assets = 0.60. 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. 10.50 % Sustainable growth rate Internal growth rate b. 6.30 %
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