Mercantile Co

question 21

Multiple Choice

Mercantile Co. has net income of $3,413,500 on assets of $16,109,445 and retains 55 percent of its income every year. What is the company's internal growth rate? (Do not round intermediate calculations. Round final answer to two decimal places.)

• A) 21.21%
• B) 8.62%
• C) 11.65%
• D) 9.43%

---

Definitions:

Two-Way ANOVA

A statistical test used to determine the effect of two nominal predictor variables on a continuous outcome variable.

Interaction

A statistical term describing a situation in which the effect of one explanatory variable on the response variable depends on the level of another explanatory variable.

Main Effects

In statistics and experimental design, the direct impact of an independent variable on a dependent variable, disregarding interactions with other variables.

Profile Plot

A graphical representation that shows trends and interactions in data across different variables, typically used in multivariate analysis.