Gemmill Co's income statement and balalnce sheet are provided below:

Income Statement		Balance Sheet
Sales	$3,100	Current assets	$3,295	Debt	$6,588
Costs	2,046	Fixed assets	8,067	Equity	4,774
Taxable income	$1,054	Total	$11,362	Total	$11,362
Taxes (23%)	242
Net income	$812

Assume that debt and equity do not grow proportional to sales but asset and costs do. And the company maintains a constant 22 percent ratio of dividends to net income.

Compute the rate of internal growth for Gemmill.

Multiple Choice

• 5.8%

• 15.29%

• 5.9%

• 1.6%

• 6%

Gemmill Co's income statement and balalnce sheet are provided below: Income Statement Balance Sheet Sales $3,100 $3,295 Debt $6,588 Current assets Fixed -assets Costs 2,046 8,067 Equity 4,774 $1,054 Total $11,362 Total $11,362 Taxable income Taxes (23%) Net income 242 $812 Assume that debt and equity do not grow proportional to sales but asset and costs do. And the company maintains a constant 22 percent ratio of dividends to net income. Compute the rate of internal growth for Gemmill