Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The most recent financial statements for Mandy Company are shown below: Income Statement Balance Sheet Sales $ 97,800 Current assets $ 37,500 Debt $ 48,600
The most recent financial statements for Mandy Company are shown below:
Income Statement | Balance Sheet | ||||
---|---|---|---|---|---|
Sales | $ 97,800 | Current assets | $ 37,500 | Debt | $ 48,600 |
Costs | 69,450 | Fixed assets | 96,500 | Equity | 85,400 |
Taxable income | $ 28,350 | Total | $ 134,000 | Total | $ 134,000 |
Tax (22%) | 6,237 | ||||
Net Income | $ 22,113 |
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started