Pizza Piatta Has Net Income of $680 and Total Equity

question 160

Multiple Choice

Pizza Piatta has net income of $680 and total equity of $4,000. The debt-equity ratio is 1.0 and the payout ratio is 40 percent. What is the internal growth rate?

• A) 3.52%
• B) 5.37 %
• C) 7.30 %
• D) 9.64%
• E) 11.36 %t

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Definitions:

Total Asset Cost

The sum of all costs incurred to acquire an asset and make it ready for its intended use.

Depreciation Expense

Depreciation expense is the allocation of the cost of a tangible asset over its service life, reflecting the decrease in its value over time.

Book Value

The net value of a company's assets minus its liabilities, often used as an estimate of an asset's value if it were to be liquidated.

Accrued Property Taxes

Property taxes that have been incurred but not yet paid, typically recorded as a liability on the balance sheet.