Question
The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 19,000 Current assets $ 11,720 Debt $ 15,760
| The most recent financial statements for Bello Co. are shown here: |
| Income Statement | Balance Sheet | ||||||||||
| Sales | $ | 19,000 | Current assets | $ | 11,720 | Debt | $ | 15,760 | |||
| Costs | 12,880 | Fixed assets | 26,550 | Equity | 22,510 | ||||||
| Taxable income | $ | 6,120 | Total | $ | 38,270 | Total | $ | 38,270 | |||
| Taxes (21%) | 1,285 | ||||||||||
| Net income | $ | 4,835 | |||||||||
| Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 percent dividend payout ratio. |
| What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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Optimization Methods In Finance
Authors: Gerard Cornuejols, Reha Tütüncü
1st Edition
0521861705, 978-0521861700
