Underwood Enterprises earns $0.07 in profit on every $1 of sales and has $0.67 in assets for every $1 of sales. The firm pays out 20 percent of its profits to its shareholders. What is the internal growth rate?
A) 6.37 percent
B) 7.76 percent
C) 8.80 percent
D) 9.12 percent
E) 9.65 percent

Question

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The Answer of Underwood Enterprises earns $0.07 in profit on every $1 of sales and has $0.67 in assets for every $1 of sales. The firm pays out 20 percent of its profits to its shareholders. What is the internal growth rate?
A) 6.37 percent
B) 7.76 percent
C) 8.80 percent
D) 9.12 percent
E) 9.65 percent

Underwood Enterprises Earns $0