Cold Ice Has a Profit Margin of 8

question 90

Multiple Choice

Cold Ice has a profit margin of 8.3 percent and a payout ratio of 42 percent. The firm has annual sales of $386,400, current liabilities of $37,200, long-term debt of $123,800, and net working capital of $16,700, and net fixed assets of $391,500. No external equity financing is possible. What is the internal growth rate?

• A) 5.91 percent
• B) 3.44 percent
• C) 4.36 percent
• D) 4.02 percent
• E) 6.14 percent

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Definitions:

Directly Correlates

A direct relationship between two variables where a change in one variable is associated with a change in the other, in the same direction.

Self-efficacy

Someone's faith in their power to finish tasks and fulfill goals.

Self-esteem

An individual's overall subjective evaluation of their own worth or value.

General Belief

A widely held opinion or conviction that isn't specific to individuals but shared by a group or society.