Income Statement Sales Costs Taxable income Taxes (21%) Net income $ 20,300 13,900 Sustainable growth rate $6,400 1,344 $5,056 Current assets Fixed assets Total Balance Sheet $11,980 32,400 % 44,380 Debt Equity $ 16,540 27,840 Assets and costs are proportional to sales. Debt and equity are not. The compan maintains a constant 45 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percen- rounded to 2 decimal places, e.g., 32.16.) Total $44,380

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
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Income Statement
Sales
Costs
Taxable income
Taxes (21%)
Net income
$
20,300
13,900
Sustainable growth rate
$6,400
1,344
$5,056
Current assets
Fixed assets
Total
Balance Sheet
$11,980 Debt
32,400 Equity
%
$
44,380
Total
$ 16,540
27,840
Assets and costs are proportional to sales. Debt and equity are not. The company
maintains a constant 45 percent dividend payout ratio. What is the sustainable growth
rate? (Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
$44,380
Transcribed Image Text:Income Statement Sales Costs Taxable income Taxes (21%) Net income $ 20,300 13,900 Sustainable growth rate $6,400 1,344 $5,056 Current assets Fixed assets Total Balance Sheet $11,980 Debt 32,400 Equity % $ 44,380 Total $ 16,540 27,840 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) $44,380
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