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Problem 3-20 Calculating Internal Growth [LO 3] The most recent financial statements for Shinoda Manufacturing Co....

Problem 3-20 Calculating Internal Growth [LO 3]

The most recent financial statements for Shinoda Manufacturing Co. are shown below:
Income Statement Balance Sheet
  Sales $ 63,400   Current assets $ 24,000   Debt $ 40,200
  Costs 45,080   Fixed assets 76,900   Equity 60,700
  Taxable income $ 18,320      Total $ 100,900      Total $ 100,900  
  Tax (35%) 6,412
  Net Income $ 11,908

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. No external financing is possible.

Required:

What is the internal growth rate????
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