6. Sustainability Financing LO4

A business venture projected to obtain net income of IDR 4,000,000 next year. It also will pay 30% of dividend and retained the leftover. Assuming it will scale up with the same margin and it started with book value of equity in the amount of IDR 20,000,000 in the beginning of the year.

Required:

a. Calculate the total dividend to be paid in next year by the venture.

b. Calculate the next- year increase of retained earnings of the venture.

c. Calculate the sustainable sales growth rate of the venture.