Part 4 I B Attempt 4/10 for 10 pts. . What rate of growth is sustainable without any additional borrowing (internal growth rate)? A+ decimals Submit NiteLate Inc. had revenue of $176,000 last year, costs of $105,600 and depreciation of $26,400. The company paid 2.6% interest on its debt, and its average tax rate is 0.25. NiteLate paid out $17,600 in dividends, and wants to maintain the same dividend payout ratio in the future. At the beginning of the year, the company had a book value of debt of $34,000 and a book value of equity of $47,000. Over the course of the year, no debt or equity was newly issued or retired. Dividend payout ratio: Dividends d Net income 17,600 32,337 0.5443 Retention ratio: b= 1-d = 1-0.5443 = 0.4557 Change in retained earnings: ARE = b * Net income = 0.4557 * 32,337 = 14,737 New equity at end of year: E1 = Ep + ARE = 47,000 + 14,737 = 61,737 What was net income last year (in $)? 32337 Correct