The most recent financial statements for Mandy Company are shown here: Income Statement Sales Costs Taxable income Taxes (21%) Net income $ 20,300 13,900 $ 6,400 1,344 $5,056 Current assets Fixed assets Total Balance Sheet $11,980 Debt 32,400 Equity $ 44,380 Total $16,540 27,840 $44,380 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 internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)

The most recent financial statements for Mandy Company are shown here: Income Statement Sales Costs Taxable income Taxes (21%) Net income $ 20,300 13,900 $ 6,400 1,344 $5,056 Current assets Fixed assets Total Balance Sheet $11,980 Debt 32,400 Equity $ 44,380 Total $16,540 27,840 $44,380 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 internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 6MCQ

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