CN Railways Is North America's Fifth Largest Railway A)22%
B)3

question 21

Multiple Choice

CN Railways is North America's fifth largest railway. Use the financial information in the table to calculate CN's maximum internal growth rate. CN Railway Company
As of December 31, Year 10
$$\begin{array} { | c | c | } \hline \text { ROE } & 8.62 \% \\\hline \text { ROA } & 3.02 \% \\\hline \begin{array} { c } \text { Net Profit } \\\text { Margin }\end{array} & 9.35 \% \\\hline \begin{array} { c } \text { Total Asset } \\\text { Turnover }\end{array} & 0.32 \\\hline \begin{array} { c } \text { Dividend } \\\text { Payout Rate }\end{array} & 30 \% \\\hline\end{array}$$

• A)2.2%
• B)3.1%
• C)6.4%
• D)7.0%
• E)9.4%

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Definitions:

Socialize Matters

The process of discussing and engaging with issues or concerns within a social context or group to gain varied perspectives or reach consensus.

Organ Reserve Power

The capacity of an organ to function beyond its normal requirements, allowing the body to cope with excess stress or demand.

Decade

A decade, defined as a span of ten years.

Average Age

A statistical measure that sums the ages of all individuals in a group and divides by the number of individuals to define the central age for that population.