Problem 4-6 Calculating Internal Growth [LO3] The most recent financial statements for Marcus Company are shown here: Income Statement Balance Sheet $ 11,720 Sales Costs Taxable income Taxes (21%) Net income $ 19,000 12,880 Current assets Fixed assets $ 6,120 Total 1,285 26,550 Debt Equity $ 38,270 Total $ 15,760 22,510 $ 38,270 $ 4,835 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? Note: Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16. Internal growth rate %
Problem 4-6 Calculating Internal Growth [LO3] The most recent financial statements for Marcus Company are shown here: Income Statement Balance Sheet $ 11,720 Sales Costs Taxable income Taxes (21%) Net income $ 19,000 12,880 Current assets Fixed assets $ 6,120 Total 1,285 26,550 Debt Equity $ 38,270 Total $ 15,760 22,510 $ 38,270 $ 4,835 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? Note: Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16. Internal growth rate %
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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![Problem 4-6 Calculating Internal Growth [LO3]
The most recent financial statements for Marcus Company are shown here:
Income Statement
Balance Sheet
$ 11,720
Sales
Costs
Taxable income
Taxes (21%)
Net income
$ 19,000
12,880
Current assets
Fixed assets
$ 6,120
Total
1,285
26,550
Debt
Equity
$ 38,270
Total
$ 15,760
22,510
$ 38,270
$ 4,835
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?
Note: Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.
Internal growth rate
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa2f28ad8-a80d-468a-9feb-969e0cac3143%2Faefcd3f1-0ee5-42c5-ac5c-d412786f8522%2Fezkgon_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 4-6 Calculating Internal Growth [LO3]
The most recent financial statements for Marcus Company are shown here:
Income Statement
Balance Sheet
$ 11,720
Sales
Costs
Taxable income
Taxes (21%)
Net income
$ 19,000
12,880
Current assets
Fixed assets
$ 6,120
Total
1,285
26,550
Debt
Equity
$ 38,270
Total
$ 15,760
22,510
$ 38,270
$ 4,835
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?
Note: Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.
Internal growth rate
%
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