Question
Loreto Inc. has the following financial ratios: asset turnover = 1.20; net profit margin (i.e., net income/sales) = 7%; payout ratio = 25%; equity/assets =
Loreto Inc. has the following financial ratios: asset turnover = 1.20; net profit margin (i.e., net income/sales) = 7%; 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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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
9th edition
1259722619, 978-1260049190, 1260049191, 978-1259722615
