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The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $3,900 Current assets $4,145 Debt $8,288 Costs 2,574 Fixed
| The most recent financial statements for Live Co. are shown here: |
| Income Statement | Balance Sheet | ||||
| Sales | $3,900 | Current assets | $4,145 | Debt | $8,288 |
| Costs | 2,574 | Fixed assets | 10,149 | Equity | 6,006 |
| Taxable income | $1,326 | Total | $14,294 | Total | $14,294 |
| Taxes (33%) | 438 | ||||
| Net income | $888 | ||||
| Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 18 percent dividend payout ratio. No external equity financing is possible. |
| Required: |
| What is the internal growth rate? (Do not round your intermediate calculations.) |
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Financial Accounting
Authors: Dr. Larry M. Walther
1st Edition
1456352970, 9781456352974
