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Internal Growth Rate Leash N Collar Reported a Profit Margin

Question 73

Multiple Choice

Internal Growth Rate Leash N Collar reported a profit margin of 8%, total asset turnover ratio of 1.5 times, debt-to-equity ratio of 0.75 times, net income of $400,000, and dividends paid to common stockholders of $200,000. The firm has no preferred stock outstanding. What is Leash N Collar's internal growth rate?


A) 5.2632%
B) 7.3333%
C) 8.6956%
D) 6.383%

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