Loreto Inc. has the following financial ratios: asset turnover = 1.60; profit margin = 6%; payout ratio = 30%; equity/assets = 0.50.
a. What is Loreto's sustainable growth rate? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
b. What is its internal growth rate? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)