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For this question, use the following financial statements: Income Statement Balance Sheet Sales $16,400 Current assets $11,200 Debt $13,600 Costs 11,200 Fixed assets taxable

     


For this question, use the following financial statements: Income Statement Balance Sheet Sales $16,400 Current assets $11,200 Debt $13,600 Costs 11,200 Fixed assets taxable income $5,200 Total 24,300 $35,500 Equity 21,900 Total $35,500 Taxes 21% 1,092 Net income $4,108 Payout ratio: 30.00% Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. A) What is the internal growth rate? B) What is the sustainable growth rate? C) What do these two numbers mean?

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