Question
Sales $ 64,000 Current assets $ 27,000 Debt $ 43,200 Costs 44,780 Fixed assets 79,900 Equity 63,700 Taxable income $ 19,220 Total $ 106,900 Total
| Sales | $ | 64,000 | Current assets | $ | 27,000 | Debt | $ | 43,200 | ||
| Costs | 44,780 | Fixed assets | 79,900 | Equity | 63,700 | |||||
| Taxable income | $ | 19,220 | Total | $ | 106,900 | Total | $ | 106,900 | ||
| Tax (35%) | 6,727 | |||||||||
| Net Income | $ | 12,493 |
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 41 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? |
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The Laymans Guide To Managing Your Investments
Authors: Thomas Dunleavy
1st Edition
979-8763592214
