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The most recent financial statements for Mandy Company are shown below: Balance Sheet $ 33,500 Debt 94,100 Equity Total $ 127,600 Income Statement Sales Costs
The most recent financial statements for Mandy Company are shown below: Balance Sheet $ 33,500 Debt 94,100 Equity Total $ 127,600 Income Statement Sales Costs Taxable income Tax (248) Net Income $ 93,000 Current assets 67,050 Fixed assets Total $ 25,950 6,228 $ 19,722 Internal growth rate Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external financing is possible. What is the internal growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. $ 43,800 83,800 $ 127,600 %
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