Question
The most recent financial statements for Minnie's Manufacturing Co. are shown below:Income StatementBalance SheetSales$94,200Current assets$34,500Debt$45,000Costs67,650Fixed assets94,700Equity84,200Taxable income$26,550Total$129,200Total$129,200Tax5,576Net Income$20,974Assets and costs are proportional to sales. Debt
The most recent financial statements for Minnie's Manufacturing Co. are shown below:Income StatementBalance SheetSales$94,200Current assets$34,500Debt$45,000Costs67,650Fixed assets94,700Equity84,200Taxable income$26,550Total$129,200Total$129,200Tax5,576Net Income$20,974Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. No external financing is possible.
What is the internal growth rate?(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