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Loreto Inc. has the following financial ratios: asset turnover = 2.00; net profit margin (i.e., net income/sales) = 8%; payout ratio = 40%; equity/assets =

Loreto Inc. has the following financial ratios: asset turnover = 2.00; net profit margin (i.e., net income/sales) = 8%; payout ratio = 40%; 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.)

a.Sustainable growth rate

%

b.Internal growth rate

%

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