he most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet Sales $ 20,400 Current assets $ 12,000 Debt $ 16,600 Costs 14,000 Fixed assets 32,850 Equity 28,250 Taxable income $ 6,400 Total $ 44,850 Total $ 44,850 Taxes (22%) 1,408 Net income $ 4,992 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)
he most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet Sales $ 20,400 Current assets $ 12,000 Debt $ 16,600 Costs 14,000 Fixed assets 32,850 Equity 28,250 Taxable income $ 6,400 Total $ 44,850 Total $ 44,850 Taxes (22%) 1,408 Net income $ 4,992 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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he most recent financial statements for Mandy Company are shown here:
Income Statement
Sales $ 20,400 Current assets $ 12,000 Debt $ 16,600
Costs 14,000 Fixed assets 32,850 Equity 28,250
Taxable income $ 6,400 Total $ 44,850 Total $ 44,850
Taxes (22%) 1,408 Net income $ 4,992
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)
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