The most recent financial statements for Bello Co. are shown here:Income StatementBalance SheetCurrentSales$20,900$ 12,100 Debt$ 16,900assetsCosts14,400 Fixed assets 35,100 Equity30,300Taxable$ 6,500Total$47,200Total$47,200incomeTaxes (25%)1,625Net income$ 4,875Assets and costs are proportional to sales. Debt and equity are not. The companymaintains a constant 35 percent dividend payout ratio.What is the internal growth rate? (Do not round intermediate calculations and enteryour answer as a percent rounded 2 decimal places, e.g., 32.16.)Internal growth rate%

Dividend payout ratio = 35% Plow back ratio (b) = 1 - Payout ratio = 1 - 35% = 65%

Answered: The most recent financial statements…

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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The most recent financial statements for Mixton, Incorporated, are shown here: INCOME STATEMENT Sales Costs Taxable income Taxes (22%) Net income $ 52,000 Assets 42,400 $ 9,600 2,112 $ 7,488 Total BALANCE SHEET Debt Equity Total Answer is complete but not entirely correct. External financing needed s 11,990 X $ 115,700 $ 115,700 $ 34,500 81,200 $ 115,700 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,900 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $61,360. What is the external financing needed? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
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