Question
The most recent financial statements for Bello Company are shown here: Income Statement Balance Sheet Sales $ 4,400 Current assets $ 4,677 Debt $ 9,351
The most recent financial statements for Bello Company are shown here:
| Income Statement | Balance Sheet | ||||
| Sales | $ 4,400 | Current assets | $ 4,677 | Debt | $ 9,351 |
| Costs | 2,904 | Fixed assets | 11,450 | Equity | 6,776 |
| Taxable income | $1,496 | Total | $ 16,127 | Total | $ 16,127 |
| Taxes (22%) | 329 | ||||
| Net income | $ 1,167 | ||||
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 26 percent dividend payout ratio.
What is the internal growth rate?
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McMillan On Options
Authors: Lawrence G. McMillan
2nd Edition
0471678759, 978-0471678755
