The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $ 11,780 Debt 27,900 Equity Sales Costs Taxable income Taxes (21%) Net income $19,300 13,200 Sustainable growth rate $ 6,100 1,281 $ 4,819 Current assets Fixed assets Total $ 39,680 % Total $ 15,940 23,740 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 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.) $39,680
The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $ 11,780 Debt 27,900 Equity Sales Costs Taxable income Taxes (21%) Net income $19,300 13,200 Sustainable growth rate $ 6,100 1,281 $ 4,819 Current assets Fixed assets Total $ 39,680 % Total $ 15,940 23,740 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 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.) $39,680
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.
Return on Equity
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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Transcribed Image Text:The most recent financial statements for Mandy Company are shown here:
Income Statement
Balance Sheet
$ 11,780 Debt
27,900 Equity
Sales
Costs
Taxable income
Taxes (21%)
Net income
$19,300
13,200
Sustainable growth rate
$ 6,100
1,281
$ 4,819
Current assets
Fixed assets
Total
$
39,680
%
$ 15,940
23,740
Assets and costs are proportional to sales. Debt and equity are not. The company
maintains a constant 45 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.)
Total $ 39,680
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