The most recent financial statements for Bello Co. are shown here:

Income Statement		Balance Sheet
Sales	$4,800	Current assets	$5,102	Debt	$10,201
Costs	3,168	Fixed assets	12,491	Equity	7,392
Taxable income	$1,632	Total	$17,593	Total	$17,593
Taxes (24%)	392
Net income	$1,240

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 34 percent dividend payout ratio.

What is the internal growth rate?

Multiple Choice

• 4.78%

• 4.88%

• 12.45%

• 4.98%

• 2.46%