The Two Sisters has a 9 percent return on assets and a 75 percent retention ratio.What is the internal growth rate?
A)6.50 percent
B)6.75 percent
C)6.97 percent
D)7.24 percent
E)7.38 percent

Name: The Two Sisters has a 9 percent return on assets and a 75 percent retention ratio.What is the internal growth rate? A)6.50 percent B)6.75 percent C)6.97 percent D)7.24 percent E)7.38 percent
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Internal growth rate = (0.09 × 0.75)/[1 - (0.09 × 0.75)] = 7.24 percent

The Two Sisters Has a 9 Percent Return on Assets