The most recent financial statements for Mandy Company are shown here: Income Statement Balance Sheet Sales $ 19,200 Current assets $ 11,760 Debt $ 15,880 Costs 13,050 Fixed assets 27,450 Equity 23,330 Taxable income $ 6,150 Total $ 39,210 Total $ 39,210 Taxes (24%) 1,476 Net income $ 4,674 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 Balance Sheet Sales $ 19,200 Current assets $ 11,760 Debt $ 15,880 Costs 13,050 Fixed assets 27,450 Equity 23,330 Taxable income $ 6,150 Total $ 39,210 Total $ 39,210 Taxes (24%) 1,476 Net income $ 4,674 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.)
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
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Question
|
The most recent financial statements for Mandy Company are shown here: |
| Income Statement | |||||
|---|---|---|---|---|---|
| Sales | $ 19,200 | Current assets | $ 11,760 | Debt | $ 15,880 |
| Costs | 13,050 | Fixed assets | 27,450 | Equity | 23,330 |
| Taxable income | $ 6,150 | Total | $ 39,210 | Total | $ 39,210 |
| Taxes (24%) | 1,476 | ||||
| Net income | $ 4,674 | ||||
|
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.) |
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