Last Year, Foley Inc

question 35

Multiple Choice

Last year, Foley Inc.reported net fixed assets of $400, net working capital of $100, net income of $120, dividends of $70, and earnings retained in the period of $50.What is Foley Inc.'s internal growth rate?

• A)17.5 percent
• B)30 percent
• C)10 percent
• D)12.5 percent

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Definitions:

Factory Profits

Refers to the net income generated from manufacturing operations after deducting all operational costs and expenses.

High Demand

A market condition where the desire for a product or service significantly exceeds its supply or availability.

Maximin Criterion

A decision rule used in uncertainty conditions, selecting the option with the best of the worst possible outcomes.

Uncertainty

The state of having limited knowledge about an existing condition or future outcome, making it difficult to make accurate predictions or decisions.