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The most recent financial statements for Alexander Co. are shown here: $48,600 60,750 Income Statement Balance Sheet Current Long-term Sales $45,000 $70,470 assets debt Costs
The most recent financial statements for Alexander Co. are shown here: $48,600 60,750 Income Statement Balance Sheet Current Long-term Sales $45,000 $70,470 assets debt Costs 28,800 Fixed assets 38,880 Equity Taxable $16,200 Total $109,350 Total income Taxes (21%) 3,402 Net income $12,798 $109,350 Assets and costs are proportional to sales. The company maintains a constant 32 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued? Multiple Choice $3,891.00 $7,424.28 $3,252.89 $7,624.28 $7,524.28 If ATX Co. has an ROA of 5 percent and a payout ratio of 17 percent, what is its internal growth rate? Multiple Choice O 5.02% o 4.94% O 4.33% 3.72% O 0.86%
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