1. Internal Growth Rate Leash N Collar reported a profit margin of 8.4%, total asset turnover ratio of 1.9 times, debt-to-equity ratio of 0.79 times, net income of $440,000, and dividends paid to common stockholders of $240,000. The firm has no preferred stock outstanding. What is Leash N Collar's internal growth rate? (Do not round intermediate steps.)
5.2657%
10.9048%
7.822%
9.1703%
2. Which of the following will decrease the additional funds needed from external sources?
The firm's profit margin decreases
The firm's retention ratio is decreased
The firm becomes less capital intensive
The firm reduces its usage of trade credit