Katelyn's Kites has net income of $240 and total equity of $2,000. The debt-equity ratio is 1.0 and the
Plowback ratio is 40 percent. What is the internal growth rate?

a. 2.46 percent
b. 3.00 percent
c. 4.92 percent
d. 5.88 percent
e. 6.00 percent