The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 19,800 Current assets $ 11,880 Debt $ 16,240 Costs 13,500 Fixed assets 30,150 Equity 25,790 Taxable income $ 6,300 Total $ 42,030 Total $ 42,030 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.)
The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 19,800 Current assets $ 11,880 Debt $ 16,240 Costs 13,500 Fixed assets 30,150 Equity 25,790 Taxable income $ 6,300 Total $ 42,030 Total $ 42,030 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.)
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
|
The most recent financial statements for Bello Co. are shown here: |
| Income Statement | Balance Sheet | ||||||||||
| Sales | $ | 19,800 | Current assets | $ | 11,880 | Debt | $ | 16,240 | |||
| Costs | 13,500 | Fixed assets | 30,150 | Equity | 25,790 | ||||||
| Taxable income | $ | 6,300 | Total | $ | 42,030 | Total | $ | 42,030 | |||
| 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.) |
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
Таxable
$ 6,300
Total
$42,030
Total
$42,030
income
Тахes (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
%
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