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Given the most recent financial statements for Microsoft (FY2019). Sales for FY2020 are expected to grow by 4 percent. The following assumption must hold in

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Given the most recent financial statements for Microsoft (FY2019). Sales for FY2020 are expected to grow by 4 percent. The following assumption must hold in the pro forma financial statements. The tax rate (percentage) and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation, Interest Expense, Cash, Account Receivable, Inventory, Other Current Assets, and Net Fixed Asset increase spontaneously with sales. If the firm is operating at full capacity and no new debt or equity are issued, calculate the internal growth rate for the firm. (Enter percentages as decimals and round to 4 decimals) Simplified Statements for MSFT Balance Sheet FY2019 Income Statement FY2019 Cash Acct. Receivable 147,145 29,129 2,928 Sales COGS SGA Depreciation EBIT 7.409 115,450 42,500 38,000 15,000 19,950 3,550 Inventory Other Current Assets Net Fixed Assets Total Assets 103,910 290,521 Interest Expense EBT 16,400 9,479 Taxes Net Income Dividends Addition to Retained Earnings 3444 12,956 6,000 6,956 Acct. Payable Long Term Debt Common Stock Retained Earnings Total Liab. And Equity 184,246 78,345 18,451 290,521

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