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The most recent financial information for Ben's Co. is: Sales Costs Taxes Net income Current assets Fixed assets Debt Equity 19,700 15,250 1,513 937 018
The most recent financial information for Ben's Co. is: Sales Costs Taxes Net income Current assets Fixed assets Debt Equity 19,700 15,250 1,513 937 018 18,282 600 10,760 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. What is the internal growth rate? 3 The most recent financial statements for RPJ Co. are shown here: Sales Costs Taxes Net income Current assets Fixed assets Current liabilities Long-term debt Equity 19,700 15,250 1,513 937 018 18,282 940 600 10,760 Assets and costs are proportional to sales. The company maintains a constant 40 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained next year assuming no new equity is issued
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