The most recent financial statements for Bello Company are shown here: Income Statement Sales Costs Taxable income $ 4,700 3,102 $1,598 Taxes (22%) 352 Net Income $1,246 O Balance Sheet Current assets $ 4,996 Debt Fixed assets 12,230 Equity Total 17,226 5.07% Total $ 9,988 7,238 $ Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 32 percent dividend payout ratio. What is the internal growth rate? 17,226

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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The most recent financial statements for Bello Company are shown here:
Balance Sheet
$ 4,700 Current assets $ 4,996 Debt
3,102
Fixed assets 12,230
Equity
Taxable
$
$1,598
Total
Total
income
17,226
Taxes (22%)
352
Net Income $1,246
Income Statement
Sales
Costs
Tran
5.07%
Assets and costs are proportional to sales. Debt and equity are not. The company
maintains a constant 32 percent dividend payout ratio.
What is the internal growth rate?
5.27%
13.26%
5.17%
$ 9,988
7,238
2.37%
$
17,226
Transcribed Image Text:The most recent financial statements for Bello Company are shown here: Balance Sheet $ 4,700 Current assets $ 4,996 Debt 3,102 Fixed assets 12,230 Equity Taxable $ $1,598 Total Total income 17,226 Taxes (22%) 352 Net Income $1,246 Income Statement Sales Costs Tran 5.07% Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 32 percent dividend payout ratio. What is the internal growth rate? 5.27% 13.26% 5.17% $ 9,988 7,238 2.37% $ 17,226
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