Question
The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $20,000 Current assets $43,126 Debt $42,504 Costs 12,000 Fixed
| The most recent financial statements for Bello Co. are shown here: |
| Income Statement | Balance Sheet | ||||
| Sales | $20,000 | Current assets | $43,126 | Debt | $42,504 |
| Costs | 12,000 | Fixed assets | 30,178 | Equity | 30,800 |
| Taxable income | $8,000 | Total | $73,304 | Total | $73,304 |
| Taxes (24%) | 1,920 | ||||
| Net income | $6,080 | ||||
| Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 24 percent dividend payout ratio. |
| What is the sustainable growth rate? |
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
