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The most recent financial statements for Minnie's Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 96,000 Current assets $ 36,000 Debt $
The most recent financial statements for Minnie's Manufacturing Co. are shown below: |
Income Statement | Balance Sheet | |||||||
Sales | $ | 96,000 | Current assets | $ | 36,000 | Debt | $ | 46,800 |
Costs | 68,550 | Fixed assets | 95,600 | Equity | 84,800 | |||
Taxable income | $ | 27,450 | Total | $ | 131,600 | Total | $ | 131,600 |
Tax | 6,588 | |||||||
Net Income | $ | 20,862 | ||||||
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 35 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.) |
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