The most recent financial statements for Mandy Company are shown below: Balance Sheet $35,500 Debt 95,300 Equity $ 130,800 Total Income Statement Sales Costs Taxable income Tax (23%) Net Income $ 95,400 Current assets Fixed assets 68,250 $ 27,150 Total 6,245 $ 20,905 $ 46,200 84,600 $ 130,800 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
The most recent financial statements for Mandy Company are shown below: Balance Sheet $35,500 Debt 95,300 Equity $ 130,800 Total Income Statement Sales Costs Taxable income Tax (23%) Net Income $ 95,400 Current assets Fixed assets 68,250 $ 27,150 Total 6,245 $ 20,905 $ 46,200 84,600 $ 130,800 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
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
am. 13.
Transcribed Image Text:The most recent financial statements for Mandy Company are shown below:
Balance Sheet
$ 35,500 Debt
95,300 Equity
Total
$ 130,800
Income Statement
Sales
Costs
Taxable income
Tax (23%)
Net Income
$ 95,400 Current assets
Fixed assets
Total
68,250
$ 27,150
6,245
$ 20,905
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?
Sustainable growth rate
$ 46,200
84,600
$ 130,800
Note: 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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