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Loreto Inc. has the following financial ratios: asset turnover = 1.50; net profit margin (i.e., net income/sales) = 6%; payout ratio = 40%; equity/assets =
Loreto Inc. has the following financial ratios: asset turnover = 1.50; net profit margin (i.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.) X Answer is complete but not entirely correct. a. 12.11 X % Sustainable growth rate Internal growth rate b. 5.71 X %
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