Kurt's Bikes Has Net Income of $86,000 and Total Equity

question 99

Multiple Choice

Kurt's Bikes has net income of $86,000 and total equity of $620,000. The debt-equity ratio is.2 and the plowback ratio is 80 percent. What is the internal growth rate?

• A) 9.68 %
• B) 9.89%
• C) 10.19%
• D) 12.29%
• E) 12.48 %

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Definitions:

Behavioural

Relating to or concerned with the actions or activities of living organisms; often used in psychology to refer to observable actions as a basis for study.

Favourable Attitude

A positive orientation or liking towards something, characterized by approval or support.

Relative Value

The worth or importance of something in relation to another item's worth, often used in economics and investing.

Source Factors

Characteristics of the communicator or source of information that affect the persuasiveness or effectiveness of the communication.