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Loreto Inc. has the following financial ratios: asset turnover = 2.20; net profit margin (i.e., net income/sales) = 6%;payout ratio = 30%; equity/assets = 0.50.

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Loreto Inc. has the following financial ratios: asset turnover = 2.20; net profit margin (i.e., net income/sales) = 6%;payout ratio = 30%; 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.) Answer is complete but not entirely correct. a. Sustainable growth rate Internal growth rate 18.48 X % 9.24 X % b

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