The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 19,400 Current assets $ 11,800 Debt $ 16,000 Costs 13,200 Fixed assets 28,350 Equity 24,150 Taxable income $ 6,200 Total $ 40,150 Total $ 40,150 Taxes (22%) 1,364 Net income $ 4,836 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 55 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 $ 19,400 Current assets $ 11,800 Debt $ 16,000 Costs 13,200 Fixed assets 28,350 Equity 24,150 Taxable income $ 6,200 Total $ 40,150 Total $ 40,150 Taxes (22%) 1,364 Net income $ 4,836 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 55 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 | |||||||||||
| Sales | $ | 19,400 | Current assets | $ | 11,800 | Debt | $ | 16,000 | |||
| Costs | 13,200 | Fixed assets | 28,350 | Equity | 24,150 | ||||||
| Taxable income | $ | 6,200 | Total | $ | 40,150 | Total | $ | 40,150 | |||
| Taxes (22%) | 1,364 | ||||||||||
| Net income | $ | 4,836 | |||||||||
|
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 55 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.) |
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