Question
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.)
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
