The Top Shop Has Net Income of $648 and Total

question 36

Multiple Choice

The Top Shop has net income of $648 and total equity of $6,600.The debt-equity ratio is 0.6 and the plowback ratio is 55 percent.What is the internal growth rate?

• A)3.49%
• B)3.87%
• C)4.92%
• D)5.88%
• E)4.33%

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Definitions:

Public Good

A Public Good is a commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning assets, incurring liabilities, and conducting business.

Stockholders

Individuals or entities that own shares in a corporation, thereby having a claim to a part of its assets and earnings.

Legal Entity

An individual, company, or organization that has legal rights and obligations, including the capacity to enter legal contracts, sue, and be sued.