Leash N Collar reported a profit margin of 8 percent, 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 percent
B) 7.3333 percent
C) 8.6956 percent
D) 6.383 percent

Question

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The Answer of Leash N Collar reported a profit margin of 8 percent, 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 percent
B) 7.3333 percent
C) 8.6956 percent
D) 6.383 percent

Leash N Collar Reported a Profit Margin of 8 Percent