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how to calculate the internal growth Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent
how to calculate the internal growth
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. What is the internal growth rate?
Income Statement
Sales = $16,200
Costs = 10,400
Taxable income = 5,800
Taxes (40%) = 2,320
NET INCOME = 3,480
BALANCE SHEET
Current assets = 10,100
Fixed Assets = 26,500
TOTAL ASSETS = 36,600
Debt = 16,400
Equity = 20,200
TOTAL LIABILITIES/EQUITY = 36,600
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