he most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $5,000 Current assets $5,315 Debt $10,626 Costs 3,300 Fixed assets 13,011 Equity 7,700 Taxable income $1,700 Total $18,326 Total $18,326 Taxes (21%) 357 Net income $1,343 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 28 percent dividend payout ratio. What is the internal growth rate?
he most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $5,000 Current assets $5,315 Debt $10,626 Costs 3,300 Fixed assets 13,011 Equity 7,700 Taxable income $1,700 Total $18,326 Total $18,326 Taxes (21%) 357 Net income $1,343 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 28 percent dividend payout ratio. What is the internal 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
Section: Chapter Questions
Problem 1PS
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| The most recent financial statements for Bello Co. are shown here: |
| Income Statement | |||||
| Sales | $5,000 | Current assets | $5,315 | Debt | $10,626 |
| Costs |
3,300 |
Fixed assets | 13,011 | Equity | 7,700 |
| Taxable income | $1,700 | Total |
$18,326 |
Total |
$18,326 |
| Taxes (21%) | 357 | ||||
| Net income |
$1,343 |
||||
| Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 28 percent dividend payout ratio. |
|
What is the internal growth rate? |
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