#6 and #7

Calculating Internal Growth [LO3] The most recent financial statements for Bello Co. are shown here: X Income Statement Sales $18,900 Current assets Costs 12,800 Fixed assets Taxable income $ 6,100 Total Taxes (21%) 1,281 Net income $ 4,819 Balance Sheet $11,700 Debt 26,500 Equity $38,200 Total $15.700 22.500 $38,200 Assets and costs are proportional to sales. Debt and equity are not. The company main- tains a constant 30 percent dividend payout ratio. What is the internal growth rate? 7. Calculating Sustainable Growth [LO3] For the company in Problem 6, what is the sustainable growth rate