I know the first part is current, but the second is wrong. Please help! Find the

Question

I know the first part is current, but the second is wrong. Please help!

Find the sustainable and internal growth rates for a firm with the following ratios: asset turnover = 2.20; profit margin = 6%; payout ratio = 30%; equity/assets = .50. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Find the sustainable and internal growth rates for a firm with the following ratios: asset turnover = 2.20; profit margin = 6%; payout ratio = 30%; equity/assets = .50. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Explanation / Answer

Internal growth rate=ROA*(1-payout)

2.2*0.06*(1-0.3)=0.0924

9.24%

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