The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 20,500 Current assets $ 12,020 Debt $ 16,660 Costs 14,100 Fixed assets 33,300 Equity 28,660 Taxable income $ 6,400 Total $ 45,320 Total $ 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 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 Bello Co. are shown here: Income Statement Balance Sheet Sales $ 20,500 Current assets $ 12,020 Debt $ 16,660 Costs 14,100 Fixed assets 33,300 Equity 28,660 Taxable income $ 6,400 Total $ 45,320 Total $ 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 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
Related questions
Question
|
The most recent financial statements for Bello Co. are shown here: |
| Income Statement | Balance Sheet | ||||||||||
| Sales | $ | 20,500 | Current assets | $ | 12,020 | Debt | $ | 16,660 | |||
| Costs | 14,100 | Fixed assets | 33,300 | Equity | 28,660 | ||||||
| Taxable income | $ | 6,400 | Total | $ | 45,320 | Total | $ | 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 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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