Saddle and Bridle reported a profit margin of 12 percent, total asset turnover ratio of 2 times, debt-to-equity ratio of 1.9 times, net income of $1 million, and dividends paid to common stockholders of $250,000. The firm has no preferred stock outstanding. What is Saddle and Bridle's internal growth rate?
A) 13.64 percent
B) 18.00 percent
C) 24.00 percent
D) 21.95 percent

Question

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The Answer of Saddle and Bridle reported a profit margin of 12 percent, total asset turnover ratio of 2 times, debt-to-equity ratio of 1.9 times, net income of $1 million, and dividends paid to common stockholders of $250,000. The firm has no preferred stock outstanding. What is Saddle and Bridle's internal growth rate?
A) 13.64 percent
B) 18.00 percent
C) 24.00 percent
D) 21.95 percent

Saddle and Bridle Reported a Profit Margin of 12 Percent