Question
The most recent financial statements for BelloCo. are shown here: Income StatementBalance SheetSales$19,300Current assets$11,780Debt$15,940Costs13,200Fixed assets27,900Equity23,740Taxable income$6,100Total$39,680Total$39,680Taxes (21%)1,281Net income$4,819 Assets and costs are proportional to sales.
The most recent financial statements for BelloCo. are shown here:
Income StatementBalance SheetSales$19,300Current assets$11,780Debt$15,940Costs13,200Fixed assets27,900Equity23,740Taxable income$6,100Total$39,680Total$39,680Taxes (21%)1,281Net income$4,819
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio.
What is the sustainable growth rate?
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Fundamental Accounting Principles Volume 1
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
15th Canadian Edition
1259259803, 978-1259259807
