Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 22 percent dividend payout ratio.

What is the internal growth rate?

The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Current Sales $4,200 $4,464 Debt $8,926 assets Fixed -assets Costs 2,772 10,930 Equity 6,468 $1,428 Total $15,394 Total $15,394 Taxable income Taxes (24%) Net income 343 $1,085 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 22 percent dividend payout ratio. What is the internal growth rate