Cold Ice Has a Profit Margin of 8

Multiple Choice

Cold Ice has a profit margin of 8.3 percent and a payout ratio of 42 percent. The firm has annual sales of $386,400, current liabilities of $37,200, long-term debt of $123,800, and net working capital of $16,700, and net fixed assets of $391,500. No external equity financing is possible. What is the internal growth rate?

A) 5.91 percent
B) 3.44 percent
C) 4.36 percent
D) 4.02 percent
E) 6.14 percent