Last Year Axle Inc

question 33

Multiple Choice

Last year Axle Inc.reported net assets of $400,equity of $200,net income of $50,dividends of $10,and earnings retained in the period of $40.What is Axle Inc.'s internal growth rate?

• A)10.0%
• B)57.1%
• C)20.0%
• D)71.4%

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Definitions:

Marginal Revenue Product

The extra income produced by the use of an additional unit of a resource, for example, labor or capital.

Unit of Output

A quantifiable amount of goods or services produced by a firm, industry, or economy.

Labor Hire

The process of employing workers, often on a temporary basis, to perform certain jobs or tasks.

Marginal Productivity

is the additional output resulting from using one more unit of a particular input, holding all other inputs constant.