The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Current Sales $19,800 $ 11,880 Debt $ 16,240 assets Costs 13,500 Fixed assets 30,150 Equity 25,790 Taxable $ 6,300 Total $42,030 Total $42,030 ncome Taxes (24%) 1,512 Net income $ 4,788 Assets and costs are proportional to sales. Debt and equity are not. The compar maintains a constant 35 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and ent your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate 12.07 %
The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Current Sales $19,800 $ 11,880 Debt $ 16,240 assets Costs 13,500 Fixed assets 30,150 Equity 25,790 Taxable $ 6,300 Total $42,030 Total $42,030 ncome Taxes (24%) 1,512 Net income $ 4,788 Assets and costs are proportional to sales. Debt and equity are not. The compar maintains a constant 35 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and ent your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate 12.07 %
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
Related questions
Question
My answer of 12.07 is worng
Transcribed Image Text:The most recent financial statements for Bello Co. are shown here:
Income Statement
Balance Sheet
Current
Sales
$19,800
$ 11,880 Debt
$ 16,240
assets
Costs
13,500
Fixed assets 30,150 Equity
25,790
Тахable
$ 6,300
Total
$42,030
Total
$42,030
income
Taxes (24%)
1,512
Net income
$ 4,788
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 sustainable growth rate? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Sustainable growth rate
12.07 %
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