Find the sustainable and internal growth rates for a firm


Question: Find the sustainable and internal growth rates for a firm with the following ratios: asset turnover = 1.20; profit margin = 4%; payout ratio = 20%; equity/assets = .50. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Sustainable growth rate %

Internal growth rate %

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Finance Basics: Find the sustainable and internal growth rates for a firm
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