What is loreto sustainable growth rate

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Reference no: EM132869531

Loreto Inc. has the following financial ratios:

asset turnover = 2.80;

net profit margin (i.e., net income/sales) = 5%;

payout ratio = 35%;

equity/assets = 0.40.

Question a. What is Loreto's sustainable growth rate?

Question b. What is its internal growth rate?

Reference no: EM132869531

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