The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet 24 Current assets S 12,020 Debt $ 16,660 Sales 20,500 14,100 Fixed assets Costs 33,300 Equity 28,660 Taxable income $ 6,400 Total Total $ 45,320 45,320 Taxes (21%) 1,344 Net income $ 5,056 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 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.) Sustainable growth rate %

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
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The most recent financial statements for Mandy Company are shown here:
Income Statement
Balance Sheet
$
20,500
$ 16,660
Sales
Current assets $ 12,020 Debt
Costs
14,100 Fixed assets
33,300 Equity
28,660
Taxable income
$ 6,400
Total
Total
$ 45,320
45,320
Taxes (21%)
1,344
Net income
$ 5,056
Assets and costs are proportional to sales. Debt and equity are not. The company
maintains a constant 30 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.)
Sustainable growth rate
%
Transcribed Image Text:The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet $ 20,500 $ 16,660 Sales Current assets $ 12,020 Debt Costs 14,100 Fixed assets 33,300 Equity 28,660 Taxable income $ 6,400 Total Total $ 45,320 45,320 Taxes (21%) 1,344 Net income $ 5,056 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 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.) Sustainable growth rate %
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