The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $11,720 Debt 26.550 Equity Sales Costs Taxable income Taxes (27) Net income $19.000 Current assets 12.880 Fixed assets $ 6,120 1,285 $4.835 Total S 38.270 $15.760 22.510 Total $ 38,270 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 Mandy Company are shown here: Income Statement Balance Sheet $11,720 Debt 26.550 Equity Sales Costs Taxable income Taxes (27) Net income $19.000 Current assets 12.880 Fixed assets $ 6,120 1,285 $4.835 Total S 38.270 $15.760 22.510 Total $ 38,270 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
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
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The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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am. 122.
Transcribed Image Text:The most recent financial statements for Mandy Company are shown here:
Income Statement
Balance Sheet
$11,720 Debt
26,550 Equity
Sales
Costs
Taxable income
Taxes (21%)
Net income
$19.000
12,880
Sustainable growth rate
$ 6,120
1,285
$4.835
Current assets
Fixed assets
Total
$
38,270
$15.760
22,510
Total $ 38,270
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.)
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