A.
The most recent financial statements for Bello Co. are shown here: |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 20,100 | Current assets | $ | 11,940 | Debt | $ | 16,420 | |||
Costs | 13,800 | Fixed assets | 31,500 | Equity | 27,020 | ||||||
Taxable income | $ | 6,300 | Total | $ | 43,440 | Total | $ | 43,440 | |||
Taxes (21%) | 1,323 | ||||||||||
Net income | $ | 4,977 | |||||||||
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.) |
B.
The most recent financial statements for Bello Co. 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 sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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