Internal growth rate

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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? (Do not round intermediate steps.)

a. 7.3333%

b. 6.383%

c. 11.5%

d. 8.6957%

Reference no: EM131795496

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