The Soccer Shoppe Has a Return on Assets of 9

question 33

Multiple Choice

The Soccer Shoppe has a return on assets of 9 percent, a return on equity of 11.3 percent, and a payout ratio of 22 percent. What is its internal growth rate?

• A) 7.72 percent
• B) 5.08 percent
• C) 8.49 percent
• D) 6.23 percent
• E) 7.55 percent

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Definitions:

Financial Activities

Transactions related to the financing of a company, including issuing debt, repaying debt, equity financing, and paying dividends.

Financing Activities

Cash flow activities that result in changes in the size and composition of the equity capital and borrowings of an entity.

Investing Activities

Investing activities include transactions involving the acquisition or disposal of non-current assets, such as property, plant, and equipment, or investment securities, which are reflected in a company's cash flow statement.

Cash Receipts

Cash receipts refer to the total amount of money received by a business or organization during a specific period, including all forms of currency, checks, and electronic transfers received from customers or clients.