The most recent financial statements for Mandy Company are shown below: Balance Sheet $ 33,500 Debt 94,100 Equity $ 127,600 Total Income Statement Sales Costs Taxable income Tax (24%) Net Income $93,000 Current assets 67,050 Fixed assets Total $ 25,950 6,228 $ 19,722 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout atio. No external equity financing is possible. What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. 16.48 % Sustainable growth rate $ 43,800 83,800 $ 127,600
The most recent financial statements for Mandy Company are shown below: Balance Sheet $ 33,500 Debt 94,100 Equity $ 127,600 Total Income Statement Sales Costs Taxable income Tax (24%) Net Income $93,000 Current assets 67,050 Fixed assets Total $ 25,950 6,228 $ 19,722 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout atio. No external equity financing is possible. What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. 16.48 % Sustainable growth rate $ 43,800 83,800 $ 127,600
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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Transcribed Image Text:The most recent financial statements for Mandy Company are shown below:
Income Statement
Balance Sheet
$ 33,500 Debt
94,100
$ 127,600
Sales
Costs
Taxable income
Tax (24%)
Net Income
$ 93,000 Current assets
67,050
Fixed assets
Total
$ 25,950
6,228
$ 19,722
Sustainable growth rate
Answer is complete but not entirely correct.
16.48 %
Equity
Total
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout
ratio. No external equity financing is possible. What is the sustainable growth rate?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
$ 43,800
83,800
$ 127,600
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