Question: Internal Growth Rate Leash N Collar reported a profit margin of 9.9%, total asset turnover ratio of 3.4 times, debt-to-equity ratio of 0.94 times, net

Internal Growth Rate Leash N Collar reported a profit margin of 9.9%, total asset turnover ratio of 3.4 times, debt-to-equity ratio of 0.94 times, net income of $590,000, and dividends paid to common stockholders of $390,000. The firm has no preferred stock outstanding. What is Leash N Collar's internal growth rate? (Do not round intermediate steps.)
a) 1.9709%
b) 10.9878%
c) 12.8798%
d) 9.101%

Step by Step Solution

★★★★★

3.45 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Internal growth rate ROA b 1 ROA b ROA Net profit m... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1019-B-C-F-D-F(3537).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Munson Communications Company has just reported earnings for the year ended June 30, 2011. Below are the firm's income statement and balance sheet. The company had a 55 percent dividend payout ratio...

P. Deen Enterprises Inc. has a total asset turnover ratio of 3.0 and a net profit margin of 9%. What is the companys return on assets?

Galenic, Inc., is a wholesaler for a range of pharmaceutical products. Before deducting any losses from bad debts, Galenic operates on a profit margin of 5 percent. For a long time the firm has...

Debt Management Ratios Tierre's Ts, Inc. reported a debt to equity ratio of 3.6 times at the end of 2008. If the firm's total assets at year-end were $15.6 million, how much of their assets are...

Internal Growth Rate Leash N Collar reported a profit margin of 8.5%, total asset turnover ratio of 2 times, debt-to-equity ratio of 0.8 times, net income of $450,000, and dividends paid to common...

1. Internal Growth Rate Leash N Collar reported a profit margin of 9.8%, total asset turnover ratio of 3.3 times, debt-to-equity ratio of 0.93 times, net income of $580,000, and dividends paid to...

1 Internal Growth Rate Leash N Collar reported a profit margin of 9.8%, total asset turnover ratio of 3.3 times, debt-to-equity ratio of 0.93 times. net income of $580,000, and dividends paid to...

Internal Growth Rate Leash N Collar reported a profit margin of 9.1%, total asset turnover ratio of 2.6 times, debt-to-equity ratio of 0.86 times, net income of $510,000, and dividends paid to common...

Internal Growth Rate Leash N Collar reported a profit margin of 8.9%, total asset turnover ratio of 2.4 times, debt-to-equity ratio of 0.84 times, net income of $490,000, and dividends paid to common...

Tom would like 3 pints of home brew today and an additional 4 pints of home brew tomorrow. Dick is willing to sell a maximum of 5 pints total at a price of $3.00 per pint today and $2.70 per pint...

Construct 90% confidence intervals for the binomial parameter p for each of the following pairs of values. Write your answers on the chart. f. Explain the relationship between the answers to parts a...

What does the Time Value of Money ( TVM ) concept state? Question 1 options: Money has no value over time A sum of money today is worth less than the same sum in the future A sum of money today is...

Write a short note on the saving function?

What is probably the most effective way to reduce a companys total quality costs?

What are the main uses of quality cost reports?

Assume the following information: Sandy has $100,000 to conduct triangular arbitrage. What will be Sandy's profit from implementing this strategy? $1900.74 $1,920.00. $6,629.85. $5,820.00

Complete the Balance sheet and sales information in the table that follows for J. White Industries using the following financial data: Total Assets Turnover: 1.5 Gross Profit margin on sales: (Sales...

Sybil, age 40 is single and supports her dependent parents who live with her and also supports her grandfather who is in a nursing home. She has an AGI of $80,000 and itemized deductions of $8,000