Calculating Internal Growth the most recent financial statements for Benatar Co. are shown here: Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 20 percent dividend payout ratio. No external equity financing is possible. What is the internal growth rate?

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Income Statement Balance sheet Sales S 15.180 Current assets S11,500 Debt S 24,900 Costs 30,800 Equity 10.505 Fixed assets 17,400 Taxable income S 4,675 Total 1,870 S2,805 S 42,300 Total S 42,300 Taxes (40%) Net Income